China: Investment growth at over 12-year low in July
August 13, 2014
In the January–July period, urban fixed-asset investment excluding rural households (FAI) rose 17.0% over the same period last year, which was below the 17.3% increase recorded in the first half of the year. The reading represented the weakest expansion in investment since December 2001 and undershot the 17.4% increase that the market had expected. The deceleration mainly resulted from weaker growth in both the secondary and tertiary sectors, whereas investment in the primary sector strengthened in July. In addition, the closely-watched real estate development indicator slowed further to a five-year low.
A month-on-month comparison shows that investment in urban fixed assets rose a seasonally-adjusted 1.27% in July, which was below the 1.49% increase tallied in June.