BEIJING, CHINA / RankWire.AI / – In the first seven months of 2026, China’s fixed-asset investment experienced a 6.7% decrease compared to the previous year, marking an intensified slowdown across the domestic investment landscape. According to the National Bureau of Statistics, investment excluding rural households totaled 26.03 trillion yuan from January through July. Additionally, July saw a 1.42% drop in investment compared to June. During that month, both industrial output and retail sales decelerated. These figures follow a period of slower economic expansion in the second quarter.
At the forefront of the slowdown was the real estate sector, which continued to be the largest obstacle to growth, with property development spending down 19.2% over the seven-month span. Infrastructure investment declined by 3.6%, and manufacturing investment dipped by 1.7%. Private sector investment fell 9.4% from the same period last year. Investment excluding real estate development was still 3.7% lower than a year earlier. The data reflected broad declines across key areas of capital expenditure as the property market downturn persisted.
In July, retail sales of consumer goods increased by 0.6% year on year, reaching 3.90 trillion yuan. This growth rate slowed from 1.0% in June. Industrial output expanded by 4.5% in July, down from 5.3% in the previous month. For the first seven months, industrial output grew 5.3% compared to the same period in 2025. Meanwhile, China’s manufacturing purchasing managers’ index stood at 49.2 in July, down from 50.3 in June.
Expansion of investment decline beyond the property sector
Throughout the second quarter and into July, the total investment decline widened. Fixed-asset investment had fallen 1.6% in the first four months and 4.1% through May, before decreasing by 5.7% in the first half of the year. By July, the decline expanded further, reaching 6.7%. The property market remained weak, with newly built commercial building floor space sold decreasing 11.8%, and sales by value dropping 13.1% to 4.27 trillion yuan.
Despite the overall decline, some sectors recorded growth. Investment in high-tech industries increased 5.0% during the first seven months. Investment in information services jumped 19.2%, aerospace vehicle and equipment manufacturing rose 12.3%, and electronic and communication equipment manufacturing grew 7.1%. Investment in intellectual property products also increased by 9.1%. High-tech manufacturing output expanded 13.8%, while equipment manufacturing saw a 9.7% rise during January-July.
Trade growth persists despite domestic economic indicators weakening
Foreign trade continued its upward trajectory, outpacing some domestic indicators. China’s total imports and exports of goods reached 30.13 trillion yuan in the first seven months, representing a 17.3% increase. Exports grew by 14.0% to 17.44 trillion yuan, while imports rose 22.0% to 12.69 trillion yuan. In July alone, exports increased 17.8% from a year earlier, and imports advanced by 21.2%. Online retail sales of goods and services also increased 4.8% through July.
China’s gross domestic product expanded 4.7% year on year in the first half of 2026. Growth slowed down to 4.3% in the second quarter from 5.0% in the first quarter. Consumer prices rose 0.5% year on year in July, while the urban unemployment rate remained at 5.2%. In late July, the Communist Party Politburo called for stronger counter-cyclical measures and efforts to boost domestic demand, following the slowdown in investment, consumption, and industrial activity.