China: Investment growth steadies in December
January 21, 2019
Urban fixed asset investment expanded 5.9% year-to-date in 2018 (2017: +7.2%), unchanged from the result in the first 11 months of the year. However, the figure was below market expectations of 6.0% growth.
The result reflected a robust acceleration in the primary sector, which offset a mild deceleration in the tertiary sector. Investment dynamics in the secondary sector were unchanged in the January–December period compared to January–November. Investments in the real estate sector moderated to a one-year low in the January–December period, indicating that the housing market is cooling.
In terms of ownership, investment growth in fixed assets of state-owned enterprises decelerated, while that of private companies accelerated.
On a month-on-month basis, investment in urban fixed assets rose a seasonally-adjusted 0.42% in December, which was marginally lower than the 0.43% expansion in November.