China: Free fall in investment growth continues in August
Urban fixed asset investment in China expanded 5.3% annually in the first eight months of the year, marking the lowest print on record since the early 1990s. The result was down from the 5.5% increase in the first seven months of the year and below market expectations of a 5.6% expansion.
The moderation in fixed asset investment growth came on the back of a weakening tertiary sector, while investments in the primary and secondary sectors edged up. Despite moderating slightly, investments in the real estate sector remained resilient in the January–August period.
From an ownership perspective, investment growth in fixed assets of private companies inched down, while growth in those of state-owned enterprises continued to decline sharply.
On a month-on-month basis, investment in urban fixed assets rose a seasonally-adjusted 0.44% in August, broadly stable from July’s 0.43% expansion.