BEIJING - Growth in China's fixed asset
investments eased marginally in the first seven months of 2006, official data
shows, offering further evidence that the economy may be starting to cool.
Urban fixed assets, a measure of investment in China's major infrastructure
projects, totaled 4.47 trillion yuan (US$560 billion), up 30.5 percent from the
same period a year ago, the National Bureau of Statistics said.
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Beijing labourers. Growth in China's fixed
asset investments eased marginally in the first seven months of 2006,
official data shows, offering further evidence that the economy may be
starting to slow. [AFP]
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No figures for July alone were provided.
China's urban fixed asset investments rose 31.3 percent in the first six
months of the year, according to previously released figures.
The level remains well above the official target of 18 percent growth for the
year, although Qu Hongbin, an economist at HSBC in Hong Kong, said the very
slight slowdown was positive.
"It's a good thing," said Qu. "It means the tightening measures that have
been introduced since March are starting to have an impact.
"But it is still far too early for the authorities to claim victory in its
fight against overheating."
China's economy expanded by 10.9 percent in the first six months of the year
and 11.3 percent in the second quarter, driven by heavy investment especially in
the provinces.
The central bank has implemented a range of macro measures to try and slow
economic growth, such as an interest rate hike in April and curbs on investment
in key industries.
Other figures released this month have also pointed to a very mild
deceleration in the economy, with year-on-year growth in industrial output for
July slowing to 16.7 percent from 19.5 percent in June.
Inflation slowed to 1.0 percent in July from 1.5 percent a month earlier.
The nation's trade surplus soared over 40 percent from a year ago to 14.61
billion dollars in July to hit another record high although export growth of
22.6 percent was slightly lower than 23.3 percent recorded 12 months earlier.
However Anantha Nageswaran, an economist at Julius Baer investment bank in
Singapore, was highly skeptical that the recent data could be relied upon to
gauge the temperature of the Chinese economy.
"The Chinese government announces a few tightening measures and, voila, we
have slower industrial production and investment spending growth," Nageswaran
told clients in a note.
