BEIJING, CHINA / RankWire.AI / – In China, during the first seven months of 2026, fixed-asset investment experienced a 6.7% year-on-year decline, reflecting a widespread slowdown in domestic economic activity. According to the National Bureau of Statistics, investment excluding rural households totaled 26.03 trillion yuan from January through July. In July alone, investment also decreased by 1.42% compared to June. The month saw reductions in industrial output and retail sales as well. These figures follow a period of slower economic growth recorded in the second quarter.
The property sector remained the primary factor pulling down overall investment, with property development expenditure declining by 19.2% over the seven months. Infrastructure investments fell by 3.6%, while manufacturing investments saw a decrease of 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 of 2025. The data revealed declines in key areas of capital spending, continuing the downward trend in the property market.
Retail sales of consumer goods in July increased by 0.6% year on year to reach 3.90 trillion yuan, a slowdown from June’s growth rate of 1.0%. Industrial output grew by 4.5% in July, compared with 5.3% in the previous month. For the first seven months, output rose by 5.3% compared to the same period last year. The manufacturing purchasing managers’ index in China stood at 49.2 in July, down from 50.3 in June.
Investment contraction extends beyond the property sector
The overall decline in investment widened during the second quarter and into July. Fixed-asset investment had fallen by 1.6% in the first four months and by 4.1% through May. The downturn deepened to 5.7% in the first half of the year and further expanded to 6.7% by July. Property-related indicators remained weak; newly built commercial building floor space sold dropped 11.8%, while sales by value decreased by 13.1% to 4.27 trillion yuan.
Despite the overall slump, some investment categories continued to show growth. Investment in high-tech industries increased by 5.0% during the first seven months. Investments in information services climbed 19.2%, aerospace vehicle and equipment manufacturing rose 12.3%, and electronic and communication equipment manufacturing grew by 7.1%. Investment in intellectual property products gained 9.1%, while high-tech manufacturing output increased by 13.8%, and equipment manufacturing output was up 9.7% for the period from January to July.
Trade growth persists amid weakening domestic signals
China’s foreign trade continued to outpace several domestic economic indicators. The country’s total goods imports and exports reached 30.13 trillion yuan in the first seven months, reflecting a 17.3% increase. Exports grew by 14.0% to 17.44 trillion yuan, while imports jumped 22.0% to 12.69 trillion yuan. In July, exports rose 17.8% compared to the previous year, and imports increased by 21.2%. Online retail sales of goods and services also rose by 4.8% through July.
In the first half of 2026, China’s gross domestic product expanded by 4.7% year on year. Growth slowed to 4.3% in the second quarter from 5.0% in the first quarter. Consumer prices in July increased by 0.5% year on year, while the urban unemployment rate was 5.2%. Late July saw the Communist Party Politburo call for stronger counter-cyclical measures and efforts to boost domestic demand. These directives followed the slowdown in investment, consumption growth, and industrial activity.