China: Moderation in investment continues at the outset of the year
March 11, 2015
In the first two months of the year, urban fixed-asset investment excluding rural households (FAI) expanded 13.9% over the same period last year, which was well below the 15.7% increase recorded in 2014. The reading represented the weakest expansion in investment since 2001 and undershot the 15.0% increase that market analysts had expected. The deceleration mainly resulted from weaker growth in the secondary and the tertiary sectors. Investment in the primary sector, however, accelerated in the same period. In addition, the closely-watched real estate development indicator registered moderate again in the January-February period, reaching the lowest annual growth since July 2009.
A month-on-month comparison shows that investment in urban fixed assets rose a seasonally-adjusted 1.03% in February, which was broadly unchanged from the 1.05% increase tallied in January.