China: Investment activity continues to moderate in May
June 11, 2015
In the first five months of the year, urban fixed-asset investment excluding rural households (FAI) expanded 11.4% over the same period last year, which was below the 12.0% increase recorded in the January-April period. The reading represented the weakest expansion in investment since 2000 and undershot the 11.9% increase that market analysts had expected. The deceleration mainly resulted from weaker dynamics in the secondary and the tertiary sectors. Conversely, growth in the primary sector gained momentum in May. In addition, the closely-watched real estate development indicator moderated again in the January-May period, reaching the lowest annual growth since the trough of the financial crisis in 2009.
A month-on-month comparison shows that investment in urban fixed assets rose a seasonally-adjusted 0.86% in May, which was broadly unchanged from the 0.87% increase tallied in April and marked a 19-month low.