China: Investment slowdown continues in June
July 15, 2013
In the first six months of the year, urban fixed-asset investment excluding rural households (FAI) rose 20.1% over the same period last year. The figure came in below the 20.4% increase seen in the previous month and marks the lowest reading observed since May 2012. In addition, the result narrowly missed market expectations of a 20.2% expansion. The moderation seen in the January-June period was mainly driven by slower growth in the industrial and services categories. Conversely, growth in the primary sector improved.
A month-on-month comparison does not corroborate the slowdown suggested by the annual figures. In June, investment in urban fixed assets rose a seasonally adjusted 1.51% over the previous month, which was above the 1.43% increase tallied in May.
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 unchanged from last month's Consensus. In 2014, the panel sees fixed-asset investment growing 20.0%.