China: Nominal fixed investment growth slows in October
Nominal urban fixed asset investment expanded 5.8% in year-to-date terms in October (September: +5.9% yoy). The reading was driven by slowdowns in the primary, secondary and tertiary sectors. Overall, the investment landscape remains dominated by public investment in infrastructure and high-end manufacturing, as the government respectively looks to prop up the economy and develop greater autonomy in key technological domains. While public investment growth was close to 11% in the year to October, private investment growth was a measly 1.6%, as uncertainty over Covid-19, the weak property sector and regulatory changes held back firms’ investment decisions.
On a seasonally adjusted monthly basis, nominal urban fixed asset investment rose at a more moderate pace of 0.1% in October (September: +0.5% mom).