China increasing construction spending

A new report from the US-based 2821 Freedonia Group suggests that China’s expenditure on construction will grow at around 8.5%/year until 2017. This will follow demand due to increasing urbanisation and industrialisation, as well as rising income levels. The continued investment by the 2719 Chinese Government in infrastructure will be another major factor in the growth in construction spending. But growth will be more moderate than the 16%/year seen during the 2007-2012 period. The Chinese Government had a stimulus programme to counter the global financial crisis in 2009 but this ended in 2011, and increases in construction spending along with fixed investment will see a significant slowdown, according to the Construction Outlook in China study from the The Freedonia Group’s Beijing office.