China: Nominal fixed investment slows year-to-date through May, but picks up in monthly terms
Nominal urban fixed asset investment grew 6.2% in year-to-date terms in May (April: +6.8% yoy). May’s dip was driven by slowdowns in the secondary and tertiary sectors. Secondary-sector investment continued to record by far the fastest growth of the three main economic sectors, likely aided by the government’s push to develop high-end manufacturing. Meanwhile, government investment once more significantly outpaced private investment, with private investment intentions subdued by Covid-19 and regulatory uncertainty.
On a monthly basis, nominal urban fixed asset investment grew 0.7% in seasonally-adjusted terms in May, rebounding from April’s 0.8% fall and marking the best result since November 2021.