Fixed-asset investment growth continues deceleration

BEIJING - China's fixed-asset investment grew 10.2 percent year on year in the first 11 months of 2015, level with the 10 months ending in October, official data showed on Saturday.

This is the latest step in continuous deceleration this year in the growth of fixed-asset investment, money used to purchase and build factories, machines, property and other fixed facilities. It has been one of the three main drivers for Chinese economic growth.

Investment slowdown, however, is believed to be the main reason behind China's current weakness in demand and the main downside risk to the Chinese economy.

Fixed asset investment growth has been declining since an annual high of 13.9 percent for the Jan-Feb period.

It then dipped to 13.5 percent for the March period, 12 percent for the April period, 11.4 percent for the May period, and further to 10.3 percent for the September period.

In breakdown, fixed-asset investment in the agricultural sector jumped the fastest, up 28.7 percent in the Jan-Nov period. That was followed by 11 percent for the service sector and 8.1 percent for the industrial sector, showed the new data from the National Bureau of Statistics (NBS).

Fixed-asset investment in China's eastern, central and western regions increased 8.5 percent, 14.7 percent and 8.9 percent, respectively.

Investment by foreign companies dipped 2.4 percent year on year in the 11 months ending in November, the same as that for the first 10 months.

Funding growth for fixed-asset investment continued to rise in the first 11 months, posting an increase of 7.9 percent, up from the 7.3-percent rise for the Jan-Oct period.

Of the total funds, government budgetary funds for fixed-asset investment jumped by 21.4 percent, 0.3 percentage points higher than that in the Jan-Oct period.

The NBS calculation counts only projects with investment of at least five million yuan ($776,904), as well as all property development projects.