China Investment

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China: Investment moderates for the first time this year

July 12, 2011

In the first half of this year, urban fixed-asset investment excluding rural households (FAI) increased 25.6% over the same period last year, which reverses the upward trend in place since December. The June print was below the 25.8% expansion recorded in the five months to May, but was in line with market expectations. The moderation in growth was mainly driven by weaker expansion in services, while investment in the industrial sector accelerated. According to the seasonally adjusted month-on-month indicator released by the National Bureau of Statistics, investment in urban fixed assets dropped 1.04% in June, turning negative after the 0.17% expansion tallied in May.


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