Fixed investment contracted 5.6% YoY

Partly reflecting the high base of comparison.

In part reflecting the high base of comparison, fixed investment contracted 5.6%y/y.

According to a research note from UBS, it expects the driver of investment to transit from the cyclical forces to structural forces.

Specifically, the strong pipeline of infrastructure investment, plus the government’s commitment to increase housing supply, should boost construction investment going forward.

The report noted that investment is a key driver of employment and growth.

While it is smaller than consumption it often has a larger impact because of greater volatility.

Further, investment peaked at 34% of GDP in 1997 and fell to 17% as of 2008.