China: Investment hits nine-month low in May
June 9, 2013
In the first five months of the year, urban fixed-asset investment excluding rural households (FAI) rose 20.4% over the same period last year. The print came in below the 20.6% increase seen in the previous month and marks the lowest reading since August 2012. In addition, the result missed market expectations of a 20.5% expansion.
The slowdown in the January-May period was mainly driven by slower growth in the industrial and the primary sectors. On the other hand, growth in the services category was stable.
In May, investment in urban fixed assets increased a seasonally adjusted 1.43% over the previous month, which was below the 1.61% rise seen in April.
The government has set a growth target of 18.0% for fixed-asset investment in 2013. FocusEconomics Consensus Forecast participants expect fixed-asset investment to rise 21.1% in 2013, which is down 0.1 percentage points from last month's Consensus. In 2014, the panel sees fixed-asset investment growing 20.2%.