China: Downward spiral in investment continues in November
December 12, 2014
In the January–November period, urban fixed-asset investment excluding rural households (FAI) rose 15.8% over the same period last year, which was just below the 15.9% increase recorded in the first 10 months of the year. The reading represented the weakest expansion in investment since December 2001 and matched the result that market analysts had expected. The deceleration mainly resulted from weaker growth in the secondary and the tertiary sectors. Investment in the primary sector accelerated to an 11-month high. In addition, the closely-watched real estate development indicator slowed further, reaching the lowest result since July 2009.
A month-on-month comparison shows that investment in urban fixed assets jumped a seasonally-adjusted 1.02% in November, which was well below the 1.66% increase tallied in October.