Does Decline In Chinese Fixed-Asset Investment Signal The End Of Government-led Boom?

china oil

A fresh batch of economic data came out, and most of it seems pretty benign. Inflation ticked up a bit, though nothign alarming.

Still, via Reuters, this is interesting commentary from Citi analyst Ken Peng:

“The surprise that I see so far is from fixed-asset investment. Falling from 33 per cent to 32.1 per cent year-to-date, November as a single month has fallen off quite a bit. This has to do with the government’s intention to curb investment growth, especially the government-led- type. It is a good thing. The State Council said as much, saying it would control new project approvals. It was not referring to next year but probably more immediate.”

Other stats:

– Industrial output up 19.2 pct vs forecast 18.0 pct

— Urban FAI (ytd) up 32.1 pct vs forecast 33.0 pct

— Retail sales up 15.8 pct vs forecast 16.5 pct

— CPI +0.6 pct vs forecast +0.4 pct

— PPI -2.1 pct vs forecast -2.3 pct

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.