China's fixed-asset investment (FAI) growth is likely to rebound slightly in October as manufacturing investment bottoms out and infrastructure construction takes up the slack, analysts said.
FAI grew 5.4 percent year on year in the first three quarters, retreating 0.1 percentage points from the January-August period, with investment in the manufacturing sector rising 2.5 percent, down from 2.6 percent in the first eight months, official data showed.
Though softer demand will continue to weigh on manufacturing, investment in this sector will hopefully stabilize as tax and fee cuts support corporate profits and high-tech industries and equipment upgrading boast potential for growth, said Sinolink Securities analyst Bian Quanshui.
FAI growth in the January-October period is expected to rebound to 5.5 percent, according to Bian.
Meanwhile, infrastructure investment will likely continue to pick up as supportive measures kick in and construction activity improves, said Bank of Communications chief economist Lian Ping.
In the first nine months, FAI in infrastructure increased 4.5 percent year on year, up 0.4 percentage points from the first half of the year, official data showed.
Previous efforts to accelerate local government bond issuance will improve the financing of infrastructure projects and bring investment growth to a slightly higher level, according to Southwest Securities analyst Yang Yewei, who noted falling steel inventories and recovering cement prices as evidence of more active infrastructure construction.
FAI includes capital spent on infrastructure, property, machinery and other physical assets.
China's economy expanded steadily in the first three quarters, registering a 6.2-percent growth year on year, within the government's annual target of 6-6.5 percent.