China: Growth in investment declines in July
August 14, 2017
In the first seven months of the year, urban fixed-asset investment (FAI), excluding rural households, expanded 8.3% annually, below the 8.6% rise in the January-June period. The print undershot the 8.6% increase expected by market analysts. The result reflected weaker growth in the primary and secondary sectors, while dynamics in the tertiary sector were stable. Investments in the closely-watched real estate development sector moderated for the third consecutive month, reflecting policy tightening.
Analyzing January-July’s data from the ownership side, investment growth among state-owned and state-holding units remained strong but decelerated to a one-and-a-half-year low. Activity among private companies slowed in the same period.
A month-on-month comparison shows that investment in urban fixed assets rose a seasonally-adjusted 0.61% in July, slightly below the 0.68% increase in June.