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August 7 2015 (Investorideas.com stocks newswire) Construction expenditures in China are expected to increase 7.8 percent per annum in real terms through 2019. Gains will be driven by ongoing industrialization an increasing urban population expanding foreign investment funding rising personal income levels and further population and household growth in China. In addition the government's effort to sustain growth in the manufacturing sector improve the country's infrastructure expand municipal utilities and balance regional economic disparity will help growth in construction spending. However further growth will be restricted by a slowdown in the Chinese economy especially in fixed asset investment. These and other trends are presented in Construction Outlook in China a new study from The Freedonia Group Inc. a Cleveland-based industry market research firm.
Residential building construction which accounted for 31 percent of construction spending in China in 2014 will advance at a 7.5 percent annual pace in real terms through 2019. According to analyst Toni Niu 'Rising personal income levels population and household growth and population migration from rural to urban areas will drive advances.' Government efforts to improve living conditions for low income earners (including the construction of affordable and low rent houses in urban areas and subsidies for alterations of dilapidated farmhouses in rural areas) will also spur gains in this segment.
Nonresidential buildings represented the largest segment of the construction market in China in 2014 accounting for 40 percent of construction spending. Spending on nonresidential construction is forecast to rise 8.1 percent annually in real terms through 2019. Robust increases in consumer spending for manufactured goods and services accommodative government policies and foreign direct investment will all work to drive gains. Government efforts to improve standards of living in China will also spur construction of schools hospitals and other institutional structures.
Nonbuilding construction which accounted for the remaining 28 percent of construction spending in 2014 is expected to grow at an annual rate of 7.9 percent in real terms through 2019. State-led efforts to expand and upgrade the country's transportation infrastructure especially in the less developed western regions will support gains as will government efforts to expand municipal facilities such as water power and heat supply systems to serve a growing urban population.
© 2015 by The Freedonia Group Inc.
Construction Outlook in China (published 07/2015 241 pages) is available for $5400 from The Freedonia Group Inc. For further details or to arrange an interview with the analyst please contact Corinne Gangloff by phone 440.684.9600 or e-mail pr@freedoniagroup.com. Information may also be obtained through www.freedoniagroup.com.
A limited license to use or reprint information from this news release is granted to you provided attribution for the same – including if possible the price of the report – is given to The Freedonia Group Inc. (Cleveland OH). We would also appreciate the courtesy of receiving a copy of the article or publication in which we appear.
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