China: Investment stabilizes in July
August 9, 2013
In the first seven months of the year, urban fixed-asset investment excluding rural households (FAI) rose 20.1% over the same period last year. The figure matched the previous month's reading and indicates that the downward trend which began in March has halted. The result was in line with market expectations of a 20.0% expansion and mostly reflects how the acceleration in industrial output offset weaker growth in the primary and services categories.
A month-on-month comparison provides a rosier picture. Investment in urban fixed assets rose a seasonally adjusted 1.58% over the previous month in July, which was above the 1.51% increase tallied in June.
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 0.3 percentage points from last month's Consensus. In 2014, the panel sees fixed-asset investment growing 20.0%.