China Investment May 2017


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.

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 April 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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