China: Nominal fixed investment records lowest growth since December 2020 in November
Nominal urban fixed asset investment expanded 5.2% in year-to-date terms in November (October: +6.1%). November’s result marked the worst reading since December 2020. The slowdown largely reflected weaker activity in the tertiary sector. In addition, the primary and sectors also lost pace. Looking at specific subsectors, infrastructure investment was particularly weak, while investment in electronics manufacturing boomed, amid the government’s efforts to catch up with the West in advanced technology.
On a monthly basis, nominal urban fixed asset investment rose 0.2% in seasonally-adjusted terms in November, slightly faster than October’s uptick but subdued by historical standards.
Going forward, the broad picture of strong investment in high-end manufacturing and weaker investment in other areas—particularly housing—is likely to remain, as Beijing continues to channel resources towards boosting China’s self-reliance in key high-tech domains.