BEIJING, CHINA / RankWire.AI / – China’s fixed-asset investment experienced a 6.7% decrease year on year during the initial seven months of 2026, reflecting an intensifying slowdown across domestic investment sectors. The National Bureau of Statistics reported that investment excluding rural households reached 26.03 trillion yuan from January through July. In July alone, investment dipped by 1.42% compared to June. Both industrial production and retail sales decelerated during that month, following a period of slower economic growth in the second quarter.
Property development expenditure remained the primary factor dragging down investment, decreasing by 19.2% over the seven-month span. Infrastructure investment fell by 3.6%, with manufacturing investment declining 1.7%. Private sector investment was down 9.4% compared to the previous year. Investment excluding real estate development was still 3.7% lower than in the same period last year. The data indicated broad declines across major capital spending categories amid ongoing property market challenges.
In July, retail sales of consumer goods increased by 0.6% year on year to reach 3.90 trillion yuan, a slowdown from June’s 1.0% growth. Industrial output grew by 4.5% in July, compared to 5.3% in the previous month. The total industrial output for the first seven months was up 5.3% from the same period in 2025. China’s manufacturing purchasing managers’ index stood at 49.2 in July, decreasing from 50.3 in June.
Broader investment decline extends beyond real estate
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. By the end of June, the decrease reached 5.7%, expanding further to 6.7% through July. Property sector indicators also remained subdued; newly built commercial building floor space sold dropped 11.8%, while sales by value declined 13.1% to 4.27 trillion yuan.
Despite the broad downturn, certain segments of investment still showed growth. Investment in high-tech industries increased by 5.0% over the first seven months. Specifically, investment in information services rose by 19.2%, aerospace vehicle and equipment manufacturing expanded by 12.3%, and electronic and communication equipment manufacturing grew by 7.1%. Additionally, investment in intellectual property products increased by 9.1%. High-tech manufacturing output was up 13.8%, and equipment manufacturing output grew by 9.7% during January-July.
Trade growth outpaces domestic activity as economic indicators weaken
Foreign trade continued its rapid expansion, surpassing several domestic indicators. China’s total goods imports and exports reached 30.13 trillion yuan in the first seven months, reflecting a 17.3% rise. Exports increased by 14.0% to 17.44 trillion yuan, while imports climbed 22.0% to 12.69 trillion yuan. In July alone, exports grew 17.8% year on year, and imports increased by 21.2%. Online retail sales of goods and services rose 4.8% through July.
China’s gross domestic product (GDP) grew by 4.7% year on year in the first half of 2026. However, growth slowed to 4.3% in the second quarter from 5.0% in the first. Consumer prices increased by 0.5% annually in July, while the surveyed urban unemployment rate held at 5.2%. In late July, the Communist Party Politburo called for stronger counter-cyclical measures and policies to boost domestic demand, responding to the slowdown in investment, consumption, and industrial activity.