China’s fixed-asset investment slowed further in July as real estate remained major drag
DATA MACRO
China’s fixed-asset investment slowed further in July as real estate remained major drag
DATA MACRO

China’s fixed-asset investment slowed further in July as real estate remained major drag

 

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China’s fixed-asset investment grew by 3.4% year over year in the first seven months of the year, according to data released by the National Bureau of Statistics on Tuesday, lowing from the 3.8% growth during the first half of the year.

That’s below the average estimate of 3.9% growth expected by analysts at 14 major institutions.

In breakdown, infrastructure investment grew by 6.8% year on year in the seven-month period, slowing from the 7.2% growth for the first half, likely due to slower issuance of local government special-purpose bonds and high-temperature and rainy weather which may disrupted construction activities.

Manufacturing investment grew by 5.7%, slowing from the 6% growth for the first half, showed the data. Fixed-asset investment in the high-tech manufacturing sector grew by 11.5%, showed the data.

Real estate investment slid 8.5% year over year in January – July, expanding from the 7.9% drop in the first six months.

Due to the corrections in the real estate market, real estate investment continued to decline in July, said Fu Linhui, spokesperson of the NBS.

The real estate market is in still in correction and some property developers’ business operations are facing difficulties, in particular some leading developers’ debt risks are emerging, damping market expectations, said Fu.

However, the problems are temporary and as the economy recovers, household income increases and real estate policy optimization kicks in, real estate consumption and investment are expected to improve gradually, he said.

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