Economics
China’s Infrastructure Boom Gets Swamped by Property Woes
- Satellite data show road construction picking up in July
- However, slump in property investment curbs overall activity
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China’s infrastructure stimulus is boosting economic activity but it’s not large enough to offset the hit to construction caused by the ongoing property slump, high-frequency data show.
Spending on areas such as water, roads, communications and healthcare facilities has been growing at double-digit rates for the past two months compared to last year, according to Goldman Sachs Group Inc. calculations based on official data released this week. That is up from almost zero growth last year, according to the official data.