China Investment July 2017

China

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.

The government set a growth target of 9.0% for urban fixed-asset investment for this year. FocusEconomics Consensus Forecast participants expect fixed-asset investment to grow 8.7% in 2017, which is up 0.1 percentage points from last month’s Consensus. In 2018, the panel sees fixed-asset investment growth at 8.0%.


Author: Ricard Torné, Head of Economic Research

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China Investment July 2017 0

Note: Month-on-month changes of seasonally adjusted urban fixed-asset investment index and annual growth rate (year-to-date) in %.
Source: National Bureau of Statistics of China (NBS).


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