Logo 23 Oct 2025

Adverse weather and local fiscal stress drive Q3 infrastructure contraction

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In September, infrastructure fixed asset investment (FAI) fell 4.0% y/y, marking the third consecutive month of contraction.
Why this decline is weird: In Q2, governments issued nearly RMB 1.41 trillion of bonds to support infrastructure investment, up 33.2% y/y.

It typically takes 2-3 months from ...