China Investment May 2017


China: Growth in investment falls to five-month in May

June 14, 2017

In the first five months of the year, urban fixed-asset investment (FAI), excluding rural households, expanded 8.6% annually, which was below the 8.9% increase in the January-April period. The print undershot the 8.8% increase expected by market analysts and represented the lowest print in five months. The deceleration in the January-May period was the result of weaker performances in the primary and tertiary sectors. Conversely, investments in the secondary sector strengthened in the same period. Although investments in the closely-watched real estate development sector weakened, it still recorded double-digit growth.

Analyzing data from the ownership side, investment growth among state-owned and state-holding units and in the private sector softened in the January-May period.

A month-on-month comparison shows that investment in urban fixed assets rose a seasonally-adjusted 0.72% in May, slightly below the 0.75% increase in April.

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 8.5% in 2017, which is unchanged from last month’s Consensus. In 2018, the panel sees fixed-asset investment growth at 7.9%.

Author: Ricard Torné, Lead Economist

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China Investment Chart

China Investment May 2017

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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