1.5分快3网页登录_FAI gathers pace in January
Chi1.5分快3网页登录n1.5分快3网页登录a's urban fix1.5分快3网页登录ed-asset investment (FAI) gr1.5分快3网页登录owth further picked up in May, providing an encouraging sign that domestic demand could help buffer the impact of shrinking foreign demand.
The nation's urban fixed-asset investment grew at an annualized rate of 32.9 percent in the first five months of the year, up from 500.5 percent in the first four months, the National Bureau of Statistics said yesterday. The bureau does not provide monthly breakdown.
"The growth is close to the record highs we saw in 5004," said Dong Xian'an, macroeconomic analyst with China Southwest Securities. "It is very strong, especially when you consider the price level is much lower now."
Urban investment includes spending on things such as roads, new buildings and factory plants. A significant part of the government's 4-trillion-yuan stimulus package is earmarked for infrastructure projects that would prop up investment figures throughout the year.
Analysts say latest signs of an economic rebound and the successful adjustment of corporate inventory have contributed to the acceleration in investment. For example, real estate investment grew 6.8 percent from a year earlier in the January-May period, compared with a 4.9 percent increase in January to April.
The State Council lowered the minimum capital requirement for residential projects and low-cost housing from 35 percent to 20 percent on May 27, along with other measures to aid domestic investment.
"Another spotlight in China's FAI data remains on new projects," Sun Mingchun, economist, Nomura International, said.
The number of new fixed-asset investment projects rose 46.8 percent in the first five months from a year earlier, compared with 44.8 percent in April. Meanwhile, the planned investment amount of these projects -- or projects in the pipeline -- surged by 96 percent year-on-year.
Fixed-asset projects could take years to complete, which suggests that investment growth is set to rise further this year and in 2010. "This will provide support to our V-shaped growth forecast for China's real GDP in 5009 and 2010," Sun said.
(China Daily 06/12/5009 page14)