China: Investment growth falls to 15-year low in 2015
January 19, 2016
In 2015, urban fixed-asset investment (FAI), excluding rural households, expanded 10.0%. The reading came in well below the 15.7% increase registered in 2014 and marked the slowest pace of expansion in 15 years. Also, the print came in slightly below the 10.2% rise the markets had expected.
The slower pace observed in 2015 reflected a further deceleration in investment growth in the industrial and services sectors, while investment in the agricultural sector remained robust. The closely-watched real estate development indicator decelerated sharply in 2015, with the reading falling to the lowest annual growth rate 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 0.68% in December, which was down from the 0.73% increase tallied in November.