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Construction equipment sales soar as China - Report

Infra News - Published on Fri, 19 Apr 2019

Image Source: globalconstructionreview.com
Global Construction reported that the Chinese government’s long established strategy of using construction projects to boost domestic demand seems to have contributed to better-than-expected quarterly GDP results and a huge spike in sales of construction machinery. The South China Morning Post reports that the country’s 25 largest excavator makers sold 44,278 units in March, the highest monthly figure on record; this was 69% higher than in February and an 18% jump YoY. Sales of mobile crane trucks were 60% higher in January and February than a year earlier, and heavy trucks sales in March were up 4% YoY, reaching a figure of 144,000 units, another record. Unsurprisingly, China’s heavy equipment makers are forecasting robust profit growth in the first quarter of 2019.

China reported economic growth of 6.4% for January to March of this year, which was the slowest quarterly figure for 27 years but ahead of analysts’ expectations of between 6.3% and 6.2%. Beijing has sought to head off the effects of weak global growth and the Chinese economy’s growing debt problems by sharply increased domestic investment this year. This has taken the form of tax cuts, infrastructure spending and total bank loans over the quarter of USD 865 billion.

Infrastructure spending is expected to grow 4.3% in 2019. This includes USD 120 billion in railway construction and USD 270bn in road and waterway projects. The first consequence of the investment boost appears to be a rush on the part of contractors to increase their production capacity, and this has led to a bonanza for companies making heavy construction machinery.

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Posted By : Rabi Wangkhem on Fri, 19 Apr 2019
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