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Machinery Industry Entered A Recovery Stage Nov 16, 2016

Because national plans of expanding domestic demand, especially focused on industry restructuring and revitalization plan effect began to appear, machinery and equipment industry production growth, and sequential growth rates increase, initially entering the recovery phase. Demand is gradually improving and the prices of the main raw material to stay running low, will boost the profitability of the enterprise, industry profits will be further improved.
Initially entering the recovery phase
Machinery industry in January-April industrial output value of 2,886,829,000,000 yuan, an increase of 5.33%, over the same period last year, growth dropped 23.7%. January-April across the industry to achieve the sales volume of 2,799,941,000,000 yuan, an increase of 4.7%, over the same period last year, growth dropped 25.26%. Seen from the output value and sales value growth, although falling are larger than a year earlier, but sequential growth rates have increased for two consecutive months.
1 – April, industry-wide new product output value of 522.256 billion yuan, an increase of 2.87%, over the same period last year, growth dropped 20.65%, growth 1.82% per cent, with output value is low growth.
Because national plans of a package to expand domestic demand, especially focusing on industry restructuring and revitalization plan effect began to appear. Agricultural machinery, construction equipment and heavy machinery under the influence of positive policies, production growth, and 1 per cent in April respectively, and 23.41% and 17.96%. From the various sectors of production growth compared with, apart from the cultural Office industry output growth fell 12.9%, and the rest all have varying degrees of increase in production. "Agricultural countryside" policy led to the agricultural production crop harvesting machinery, mechanical field operations 44.1% and 37.6% respectively, which March from 50.5% and 26.4%.
Seen from the trend data, we believe that the machinery industry has recovered from a rapid decline in trend, 2009 mechanical industrial economic operation in the first half are expected to continue the downward trend in the second half of last year, but is expected to recover gradually in the second half. In parallel with the production value chain growth, industry profits decline also slowed. In January-April, the machinery industry key contact enterprises realized profits fell 27.02%, drop down 14.13% from last month. Main reason is the automobile company's decline slowed significantly, second, machine tool enterprises down also has a substantial rebound, three is the mining company's profit 20% per cent. We believe that as demand becoming better and mainly raw materials such as steel and other ongoing maintenance low, will boost the profitability of the enterprise, industry profits will be further improved.