China: Investment decelerates in August
September 9, 2012
In the first eight months of the year, urban fixed-asset investment excluding rural households (FAI) rose 20.2% over the same period last year. The print undershot market expectations that had the index remaining at the 20.4% expansion tallied in the first seven months of the year. Investment in the January-August period mainly reflected a deceleration in the industry category, which offset faster growth in the services and the primary categories. Compared to the previous month, investment in urban fixed assets increased a seasonally adjusted 1.33% in August, which followed on the 1.41% rise seen in July. Meanwhile, the government continues to speed up infrastructure projects in order to boost economic growth. On 5 September, the National Development and Reform Commission (NDRC) announced the approval of new 25 urban rail projects in several cities, which amount to CNY 800 billion (USD 127 billion). In addition, Finance Minister Xie Xuren declared that the government had allocated CNY 366 billion (USD 58 billion) for infrastructure projects until July, which represents over 90% of the infrastructure budget for the full year.