Jan-May investment growth in China cools suddenly
In China, retail sales and fixed-asset investment growth suddenly cooled in May, though factory output growth remained quite steady, thus doing little to withstand uncertainly over prospects for the number two economy.
In May, factory output went up 6% from the previous year, according to the National Bureau of Statistics. Financial analysts surveyed by Reuters had hoped growth would ease a bit to 5.9% compared to April’s outcome of 6%.
Financial experts are assured that industrial output has been backed up by a government infrastructure spending spree as well as a further revival in the property market.
Fixed-asset investment growth slumped to 9.6% during the January-May period from the same period last year, thus ruining market expectations of 10.5%,that would have been intact from Jan-April.
Fixed investment by private companies kept slowing. Investment by private companies soared 3.9% year-on-year in January-May, unlike 5.2% growth in the Jan-April.