What’s new: China’s 26 major manufacturers of excavating equipment reported that their total domestic sales rose 2.7% year-on-year in November, breaking a 10-month streak of declines in the closely watched figure, an industry group said.
The return to growth was in part due to more construction projects getting underway last month, said Lü Ying, an official at the China Construction Machinery Association (CCMA). The number also benefited from a low baseline figure from the previous year.
Stricter emission rules for excavators also played a part in November’s rebound as manufacturers rushed to sell vehicles built under the old standards before the new ones took effect in December, Lü told Caixin on Thursday.
The context: Economists keep a close eye on construction equipment sales data as it is an important gauge of economic activity.
In the first 11 months of this year, the 26 companies sold 244,500 excavators in total, down 23.3% from the same period last year, according to CCMA data. Domestic sales have plunged 43.7% year-on-year to 145,700, more than enough to offset a 64.9% surge in sales overseas.
Domestic demand has been subdued due to a slowdown in infrastructure and real estate construction stemming from Covid-19 disruptions and trouble in the property market. Construction outside China, however, has picked up this year following an easing of Covid-19 restrictions elsewhere in the world, which has created growing demand overseas for excavators.
Related: Export Growth Props Up Chinese Excavator Sales Amid Weak Domestic Demand
Contact reporter Guo Yingzhe (yingzheguo@caixin.com) and editor Michael Bellart (michaelbellart@caixin.com)
Get our weekly free Must-Read newsletter.
