BEIJING, CHINA / RankWire.AI / – Amidst a backdrop of decelerating economic momentum, China’s fixed-asset investment declined 6.7% compared to the previous year during the first seven months of 2026, highlighting a widespread slowdown in domestic spending. The National Bureau of Statistics reported that investment, excluding rural households, amounted to 26.03 trillion yuan from January through July. In July alone, investment dipped by 1.42% from June, with industrial output and retail sales also losing pace for the month. These figures followed a period of slower economic growth in the second quarter.
The real estate sector continued to be the primary drag on overall investment, with property development expenditure dropping by 19.2% over the seven-month span. Infrastructure investment declined by 3.6%, and manufacturing investment decreased by 1.7%. Private sector investment fell 9.4% year on year. Investment excluding real estate development was still 3.7% lower compared to the previous year. The data pointed to declines across several major segments of capital spending as the property downturn persisted.
Retail sales of consumer goods increased by 0.6% year on year in July to reach 3.90 trillion yuan, marking a slowdown from 1.0% growth in June. Industrial output expanded by 4.5% in July, down from 5.3% growth observed a month earlier. During the first seven months, industrial output rose 5.3% compared to the same period in 2025. China’s manufacturing purchasing managers’ index stood at 49.2 in July, decreasing from 50.3 in June.
Broader decline in investment beyond the property sector
The overall decline in investment widened during the second quarter and into July. Fixed-asset investment had fallen 1.6% in the first four months and 4.1% through May, reaching a 5.7% decrease in the first half of the year before worsening to 6.7% through July. Indicators in the property market remained weak, with newly built commercial building floor space sold decreasing by 11.8%, and sales by value dropping 13.1% to 4.27 trillion yuan.
Despite the overall downturn, certain sectors of investment showed resilience. Investments in high-tech industries grew by 5.0% during the first seven months. Investments in information services jumped 19.2%, aerospace vehicle and equipment manufacturing increased by 12.3%, and electronic and communication equipment manufacturing grew by 7.1%. Investment in intellectual property products gained 9.1%. High-tech manufacturing output rose 13.8%, while equipment manufacturing output increased 9.7% in the January-July period.
Trade growth outpaces domestic indicators amid slowdown
Foreign trade continued to expand at a faster pace than several domestic metrics. China’s total goods imports and exports reached 30.13 trillion yuan in the first seven months, marking a 17.3% increase. Exports grew by 14.0% to 17.44 trillion yuan, while imports surged 22.0% to 12.69 trillion yuan. In July alone, exports rose 17.8% from a year earlier, and imports increased by 21.2%. Online retail sales of goods and services grew 4.8% through July.
China’s gross domestic product expanded by 4.7% year on year in the first half of 2026. Growth slowed to 4.3% in the second quarter from 5.0% in the first. Consumer prices increased by 0.5% in July compared to the previous year, and the urban unemployment rate stood at 5.2%. In late July, the Communist Party Politburo called for stronger counter-cyclical measures and efforts to bolster domestic demand, in response to the slowdown in investment, consumption, and industrial activity.