However, inventories are starting to come down and new housing starts will follow with a six-month lag, Barclays analysts said, providing some upside risk to demand for cement, steel and copper.

FORBES: More 'Green Shoots' In China

Strong FAI is bullish for commodities demand as increased industrial activity and construction gobbles up more cement, iron ore, crude oil and copper.

FORBES: China Bull Still Runs Strong Even If Slower