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. Last Updated: 07/27/2016

Capital Investment Up by 27%

Capital investment in the country grew at a record pace in June, almost catching up with that of China, according to the State Statistics Service.

The investments rose by 27.2 percent compared with June last year, the statistics service said Friday.

Capital investment for the first six months of 2007 also gained 22.3 percent over the first six months last year, it said.

China's capital investment growth for June was 28.5 percent, and it has been fluctuating from 24 percent to 26.7 percent every year since 2003.

The statistics service defines capital investment as what companies spend on construction, including that of apartment buildings, purchase of new equipment and other fixed assets.

Construction of apartment buildings was the main growth driver in the first half with 34.8 percent. Other types of construction accounted for 27.2 percent.

Economists attribute part of the growth to payments by energy companies for turbines made by Power Machines, which says it completed its 2005 and 2006 contracts in the first half of this year. The oil and gas sector has also been a big spender.

"Everything points to a full-scale economic upturn," UBS said in a research note Monday.

The increased investment spending means that industry is capable of handling the current trend of ruble appreciation, UBS said.