China: Nominal fixed investment growth slows in April
May 16, 2022
Nominal urban fixed asset investment increased 6.8% in year-to-date terms in April, which followed March's 9.3% increase. The deceleration was due to weaker growth in the primary, secondary and tertiary sectors. Of the three, secondary-sector investment still recorded by far the fastest growth, likely aided by the government’s push to develop high-end manufacturing. Meanwhile, government investment significantly outpaced private investment, with private investment intentions subdued by Covid-19 restrictions and regulatory uncertainty.
On a monthly basis, nominal urban fixed asset investment dropped 0.8% in seasonally-adjusted terms in April, contrasting March’s 0.4% expansion and marking the worst result since February 2020.