BEIJING, CHINA / RankWire.AI / – In the first seven months of 2026, China’s fixed-asset investment contracted by 6.7% compared to the previous year, reflecting a broad slowdown in domestic investment activity. According to the National Bureau of Statistics, investment excluding rural households totaled 26.03 trillion yuan from January through July. July alone saw a 1.42% decrease from June. During the same period, both industrial output and retail sales slowed down. These figures follow a deceleration in economic growth observed in the second quarter.
The property sector continued to be the primary drag on investment, with spending on property development dropping 19.2% over the seven months. Infrastructure investment decreased by 3.6%, while manufacturing investment declined 1.7%. Private investment fell 9.4% compared to the previous year. Excluding real estate development, investment was still 3.7% lower than a year earlier. The data highlighted declines across multiple major capital expenditure areas amid the ongoing property downturn.
Consumer goods retail sales increased by 0.6% year on year in July, reaching 3.90 trillion yuan, a slowdown from June’s growth of 1.0%. Industrial output for July grew by 4.5%, down from 5.3% in the previous month. For the first seven months, industrial production increased by 5.3% compared to the same period in 2025. The manufacturing purchasing managers’ index (PMI) stood at 49.2 in July, decreasing from 50.3 in June.
Wider investment slowdown extends beyond real estate
The overall decline in investment broadened during the second quarter and into July. Fixed-asset investment had decreased by 1.6% in the first four months and by 4.1% through May. The contraction widened to 5.7% in the first six months before reaching 6.7% through July. Indicators for property remained weak; newly built commercial building floor space sold fell 11.8%, with sales by value dropping 13.1% to 4.27 trillion yuan.
Despite the overall downward trend, some investment sectors experienced growth. Investment in high-tech industries increased by 5.0% during the first seven months. Investment in information services climbed 19.2%, aerospace vehicle and equipment manufacturing rose 12.3%, electronic and communication equipment manufacturing increased 7.1%, and investment in intellectual property products gained 9.1%. During January to July, high-tech manufacturing output rose by 13.8%, and equipment manufacturing output increased by 9.7%.
Trade growth outpaces domestic economic indicators amid slowdown
Trade figures continued to outpace several domestic indicators. China’s total goods imports and exports reached 30.13 trillion yuan in the first seven months, a 17.3% rise. Exports grew 14.0% to 17.44 trillion yuan, while imports increased 22.0% to 12.69 trillion yuan. In July, exports rose 17.8% year on year, and imports advanced 21.2%. Online retail sales of goods and services grew by 4.8% through July.
China’s gross domestic product expanded 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 quarter. Consumer prices increased 0.5% year on year in July, and the urban unemployment rate measured 5.2%. The Communist Party Politburo called for stronger counter-cyclical measures and efforts to expand domestic demand in late July, following declines in investment, consumption, and industrial activity.