(Yicai Global) June 14 -- China's fixed asset investment over the first five months was dragged down by infrastructure investment, according to the National Bureau of Statistics.
Infrastructure investment from non-farmers climbed 9.4 percent over the period to CNY21.6 billion (USD3.4 billion), 3 points less than the same figure for the first four months, bureau spokesman Mao Shengyong said at a press briefing today. Overall FAI grew 6.1 percent annually, down 0.9 percent compared with the figure for the first third.
Fixed asset investment generally breaks down into three categories: manufacturing, real estate and infrastructure, he said, adding that manufacturing grew at 5.2 percent, 0.4 percentage point faster in the first five months than the first four, and real estate investment rose 10.2 percent, just 0.1 point less than the earlier period.
China's FAI growth has slowed considerably in recent years after 10 years at above 20 percent. Part of the reason is that as the declining demand for infrastructure after that period of vast construction, but it also comes down to government regulation. The nation has been looking to hack away at risks and aims to crack right down on illegal projects and better regulate local government finances, with a particular focus on debts.
Infrastructure investment growth may remain low, but real estate will retain rapid growth while manufacturing will stay fairly stable, Mao added.
Editor: James Boynton