China’s August investment growth falls to record low

Data released on Friday shows China’s fixed-asset investment growth slowed to 5.3%, hitting a record low

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China’s fixed-asset investment growth slowed to 5.3%, hitting a record low, while industrial output and retail sales showed more promise, according to The National Bureau of Statistics.

Investment growth was expected to hit 5.5% in the first 8 months of the year, following on from January-July’s record lows.

Economists say the weak reading comes after Beijing announced tax cuts in July and the on-going US trade duties putting pressure on the Chinese economy.

However, retail sales and industrial output both beat expectations. Industrial output grew 6.1% in August, and retail rose 9%.

Analysts predicted industrial output growth would stay steady in line with July’s 6%, and retail sales were expected to rise to 8.8%.

Private sector fixed-asset investment went up 8.7 % in January-August. Private investment accounts for 60% of overall investment in China.

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