China’s Investment Slide Deepens as Infrastructure Joins Property Decline

China’s fixed-asset investment contracted by a worse-than-expected 5.7% in the first half, as infrastructure spending shrank for the first time this year and the prolonged property crisis deepened.

The year-on-year slide underscores mounting challenges for the world’s second-largest economy. The decline was steeper than the average forecast of a 4.7% drop in a Caixin poll of economists, widening significantly from the first five months.

All three major drivers faltered, official data showed Wednesday. Infrastructure investment fell 1.1%, likely hampered by lags in project funding. Property development investment plunged 18%, while manufacturing slipped 1.2%.