China Fixed-Asset Investment Falls as Property Slump Deepens

1. [para. 1] China's fixed-asset investment unexpectedly contracted in the first four months of the year, according to data from the National Bureau of Statistics. [para. 2] The figure fell 1.6% from a year earlier, missing the average forecast of 1.7% growth in a Caixin survey of economists. [para. 3] This weak reading adds to signs of slowing momentum in the world's second-largest economy amid a prolonged property downturn.

2. [para. 4] Real estate remained the biggest drag on investment, with property development investment plunging 13.7% in the first four months. The pace of decline widened by 2.5 percentage points compared to the first three months.

3. [para. 5] Private-sector confidence remained weak, as fixed-asset investment from private sources fell 5.2% in the first four months. Excluding real estate, private investment was down 1.9%.

4. [para. 6] In contrast, infrastructure investment remained relatively resilient, rising 4.3%. This was supported partly by spending on new infrastructure projects such as computing power and next-generation telecommunications networks.