China: Downward spiral in investment growth continues in September
October 21, 2014
In the January–September period, urban fixed-asset investment excluding rural households (FAI) rose 16.1% over the same period last year, which was just below the 16.5% increase recorded in the first eight months of the year. The reading represented the weakest expansion in investment since December 2001 and slightly undershot the 16.3% increase that the market had expected. The deceleration mainly resulted from weaker growth in the tertiary sector, whereas investment in the primary sector accelerated. Growth in the secondary sector stabilized in September. In addition, the closely-watched real estate development indicator slowed further, reaching an over-five-year low.
A month-on-month comparison shows that investment in urban fixed assets rose a seasonally-adjusted 0.77% in September, which was below the 0.96% increase tallied in August.