China: Investment growth continues to cool down in March
April 13, 2014
In the January-March period, urban fixed-asset investment excluding rural households (FAI) rose 17.6% over the same period last year, which was below the 17.9% increase recorded in the first two months of the year. The growth rate, which just barely undershot the 18.0% increase that market analysts had expected, represented the weakest expansion in investment since December 2002. The deceleration resulted from a deterioration in the services category. Conversely, growth in the primary and the industry sectors accelerated in March.
A month-on-month comparison shows that investment in urban fixed assets rose a seasonally-adjusted 1.24% in March, which was broadly unchanged from the 1.28% increase tallied in February.
The government set a growth target of 17.5% for urban fixed-asset investment this year. FocusEconomics Consensus Forecast participants expect fixed-asset investment to grow 19.0% in 2014, which is down 0.1 percentage points from last month's Consensus. In 2015, the panel sees fixed-asset investment growing 18.4%.