China: Investment growth cools to over 13-year low in April
May 13, 2014
In the January-April period, urban fixed-asset investment excluding rural households (FAI) rose 17.3% over the same period last year, which was below the 17.6% increase recorded in the first three months of the year. The growth rate, which undershot the 17.7% increase that market analysts had expected, represented the weakest expansion in investment since December 2001. The deceleration resulted from an across the board deterioration, with the primary sector recording the largest moderation.
A month-on-month comparison shows that investment in urban fixed assets rose a seasonally-adjusted 1.17% in April, which was below the 1.22% increase tallied in March and marked the slowest expansion in almost two years.
The government set a growth target of 17.5% for urban fixed-asset investment this year. FocusEconomics Consensus Forecast participants expect fixed-asset investment to grow 18.7% in 2014, which is down 0.1 percentage points from last month's Consensus. In 2015, the panel sees fixed-asset investment growing 18.0%.