China's economic activity drops in July
In July, China's economic activity dropped with investment surging at its slowest tempo for more than 16 years in the year-to period, as the world's number two economy grappled with the painful restructuring of its older industrial sectors.
The tempo of fixed-asset investment ticked down to 8.1% during the January-July period from 9% in January-June. Financial experts had expected it to soar 8.8%.
That’s the third consecutive month of growth below 10% and the weakest year-to-date surge since December 1999, suggesting the effects of a credit boom during the first quarter are fading away.
Folks are concerned over a lack of solid demand over the next few years, accordingly they aren't really investing, especially in capex, that’s the driving factor of the slowing investment.
While China's consumption is still strong, investment as well as net exports are heading south, with the government likely to spur headline growth via fiscal policies.