Investment in urban fixed assets such as property and factory equipment was up 26.8% year-on-year in the first 11 months of 2008, slowing from the 27.2% increase recorded in the first 10 months of the year, AP reported. The slowdown is partly due to weaker demand for exports and lower investment by property developers as they look to clear existing inventories. Chinese exports were down 0.2% in November, the first time they had fallen since 2001, with exports from Guangdong declining by 2.4% in the month. However, analysts expect spending under the government’s fiscal stimulus package and loosening credit to help spur a rebound in investment by the spring of 2009. Central bank governor Zhou Xiaochuan said further interest rate cuts will depend on continued low inflation in 2009.
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