2026.07.1502:14:19UTC+00China Fixed Investment Drops 5.7%, Worse than Forecast

China’s fixed-asset investment fell 5.7% year-on-year in the first half of 2026, a deeper contraction than both market expectations of a 4.9% decline and the 4.1% drop recorded in January–May. The property sector remained the principal drag, with real estate investment plunging 18%, following a 16.2% fall in the first five months.

Investment in infrastructure also turned negative, shrinking 2.4% after a 0.6% increase in January–May, while manufacturing investment declined 1.2%, compared with a 0.4% drop earlier in the year.

By industry, investment in the primary sector continued to grow but at a much slower pace, rising 0.9% versus 5.9% in January–May. In contrast, investment in the secondary sector fell 1.1%, reversing a 0.1% uptick, and the tertiary sector contracted 8.4%, steeper than the 6.8% decline previously.

Excluding real estate, fixed-asset investment still weakened, declining 2.7% in January–June, compared with a 1.2% drop in the first five months. On a month-on-month basis, overall fixed-asset investment decreased 0.37% in June, moderating from a 1.25% fall in May.