Fixed-asset Investment Prices Indices Going up 8.6% in Q1
According to the National Bureau of Statistics (NBS), prices indices of fixed-asset investment rose 8.6 percent year-on-year in the first quarter.
Due to the rise of building material prices (up 13.7%) and labor costs (up 13.5%), the cost of construction and installation engineering that represents almost 60% of total expenditure on fixed assets, went up 12.4%. Analysts from NBS said the increase of fixed-asset investment prices indices in the first quarter was the biggest in the past 13 years and the increase would likely to continue. The result of such increase would probably be a drop of fixed-asset investment. However, some experts believe that fixed-asset investment would stay high for the rest of the year.
In addition, real estate investment rose 32.3 percent to 468.8 billion yuan during the first quarter, or 5.4 percentage points more than a year earlier.
Economic growth slowed to 10.6 percent in the first quarter, compared with 11.7 percent in the same period of last year.
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