China: Investment growth continues to moderate in July
Urban fixed asset investment in China expanded 5.5% annually in the first seven months of the year, marking the lowest print on record since the early 1990s. The result was down from the 6.0% increase in the first six months of the year and below market expectations of a 6.0% expansion.
The moderation in fixed asset investment growth came on the back of a weakening tertiary sector, while investment in the primary and secondary sectors edged up. Investments in the real estate sector picked up pace in the January–July period, however.
From an ownership perspective, investment growth in fixed assets of private companies continued to pick up pace while growth in those of state-owned enterprises halved in the first seven months of the year compared to the January-June period.
On a month-on-month basis, investment in urban fixed assets rose a seasonally-adjusted 0.43% in July, broadly stable from June’s revised 0.45% expansion (previously reported: +0.46% month-on-month).