China: Growth in investment moderates in April
May 15, 2017
In the first four months of the year, urban fixed-asset investment (FAI), excluding rural households, in China expanded 8.9% annually, which was below the 9.2% increase in the January-March period. The print undershot the 9.1% increase expected by market analysts. The deceleration in the January-April period was the result of weaker performances across the board. Despite April’s moderation in investment growth, the closely-watched real estate development indicator expanded at the fastest pace in over two years, suggesting that dynamics in the property sector remain strong.
Analyzing January-April’s data from the ownership side, investment growth among state-owned and state-holding units accelerated, while dynamics in the private sector weakened after hitting a 15-month high in Q1.
A month-on-month comparison shows that investment in urban fixed assets rose a seasonally-adjusted 0.71% in April, slightly below the 0.76% increase in March.