China’s investment in railway increased by 37.4% yoy in August10 September, 2012, 16:22. Posted by Zarathustra
If one is looking for some clear bright spots in the August macro data dump from China, here are a few of them.
Fixed asset investment growth has slowed even further in August. On a year-on-year basis, FAI has slowed to 19.4% yoy.
Fixed asset investment growth is under pressure, notably by investment manufacturing, as growth of fixed investment in manufacturing sector has slowed to about 18.8% yoy, and FAI in manufacturing accounted for more than a third of total fixed asset investment (non-rural).
However, real estate investment, as we pointed out, picked up slightly. And perhaps quite notably, infrastructure investment has indeed picked up. Railroads investment, for instance, increased very massively by 37.4% yoy.
Source: National Bureau of Statistics
Of course, it is worth remembering that manufacturing by far is the biggest contributor towards the total volume of fixed asset investment, and it is unlikely to see any sustainable recovering on that front due to overcapacity. However, even though one should remain very sceptical about government’s ambition in providing massive stimulus in terms of infrastructure investments, one could argue that at least some of the “stimulus” being talked about for many months now is indeed there, although it is far from enough in offsetting slowdown elsewhere.