BEIJING, CHINA / RankWire.AI / – In the first seven months of 2026, China’s fixed-asset investment decreased by 6.7% compared to the previous year, reflecting a downturn driven by sluggish property development and reduced capital expenditures. According to the National Bureau of Statistics, total investment excluding rural households was 26.03 trillion yuan. The data also shows a 1.42% drop in investment in July from June. While retail sales and industrial output kept expanding, both experienced slower growth rates in July, highlighting broader economic softness.
Property development remained the most significant drag on overall fixed investment. Real estate investments declined by 19.2% during January to July. Infrastructure investment decreased by 3.6%, and manufacturing investment fell 1.7%. Private sector investment was down 9.4% year-on-year. Excluding property development, total fixed-asset investment still dropped by 3.7%. The figures indicate that the slowdown extends beyond the housing sector and impacts multiple major parts of China’s economy.
Consumer spending also showed signs of weakening in July. Retail sales increased by 0.6% year-on-year to 3.90 trillion yuan, slowing from a 1.0% rise in June. Industrial production grew by 4.5%, a slowdown from 5.3% in the previous month. During the first seven months, factory output rose by 5.3%. Meanwhile, China’s official manufacturing purchasing managers’ index fell to 49.2 in July from 50.3 in June, indicating contraction as the index slipped below the 50 threshold that marks expansion.
Property Sector Weakness Continues to Weigh on Investment
The trend of declining investment has persisted and worsened over recent months. Fixed-asset investment shrank by 1.6% in the first four months of 2026, followed by a 4.1% decrease through May. The contraction extended to 5.7% in the first half of the year and deepened further to 6.7% through July. The housing market remained under pressure, with the floor space of newly built commercial buildings sold dropping 11.8%, and the value of those sales falling 13.1% to 4.27 trillion yuan during the seven-month period.
Despite the overall slowdown, several technology sectors continued to attract increased investment. High-tech industry investment rose 5.0% from January to July. Investment in information services increased by 19.2%, aerospace vehicle and equipment manufacturing gained 12.3%, and electronic and communication equipment manufacturing grew by 7.1%. Investment in intellectual property products also increased by 9.1%. In the same period, high-tech manufacturing output surged 13.8%, and equipment manufacturing production rose 9.7%.
Trade Surpasses Domestic Spending in Growth
China’s merchandise trade maintained strong growth, even as domestic investment slowed. The total value of goods imported and exported 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 expanded by 22.0% to 12.69 trillion yuan. In July, exports rose 17.8% year-on-year, and imports increased by 21.2%. Online retail sales of goods and services also saw a 4.8% rise during the January to July period.
During the first half of 2026, China’s economy grew by 4.7% compared to the same period last year. Growth slowed in the second quarter to 4.3% from 5.0% in the first quarter. Consumer prices increased by 0.5% year-on-year in July, and the surveyed urban unemployment rate stood at 5.2%. The Communist Party Politburo called for enhanced counter-cyclical measures and steps to stimulate domestic demand in late July. These latest figures follow weaker data on investment, retail sales growth, and industrial output, highlighting ongoing economic challenges.