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May excavator sales slump compared with a decline of over 30%

AKW GROUP | Updated: Nov 16, 2015

Of 3 April, Chinese excavator sales slumped after the 7.8%, 20.2%, the May data is a must for all raised eyebrows: fell 40%, and compared with a decline of over 30%. As an important tool of construction mining excavator, its dismal sales figures also reflect the downside of fixed-asset investment growth, this reflects the pressure is steady economic growth.

Excavators are important part of the engineering machinery and equipment. Construction machinery and raw materials industries, including housing starts, rail infrastructure investments, extractive industry investments, real estate accounted for 55% the demand for construction machinery, railway infrastructure needs around 35% per cent, mining demand about 10% per cent.

From nearly a year of data, the excavator sales and fixed-asset investment growth also presents a strong positive correlation.

Early last year, excavator sales were low, starting from March, with the convening of two meetings and construction engineering in China, sales of excavators up, then enter the off-season for a relative. And in November, sales of excavators was introduced with the relevant State policies and rising. In addition, in 2013, the various models of excavators sales there was a significant change, that is suitable for inner-city, rural construction of small excavator sales have increased significantly.

This year, the excavator in December before there has been a strong growth in sales in March, demand weak fell back to levels, 4 May is falling sharply. Similarly, the growth rate of investment in fixed assets in the first quarter of this year compared to 17.6%, compared with 19.6% per cent growth last year, there has been a certain degree of decline. 4 May still not too much stimulus, and 1 ~ April fixed-asset investment growth continues to decline, only increased by 17.3%.

According to GDP data for the first quarter of this year, fixed asset investment as a percentage of GDP reached 53%. As the excavator sales and fixed asset investment showed a strong positive correlation, so when the excavator when the sales are not good, also underlines the pressure of economic growth.