According to data released by the China Machinery Industry Federation, the machinery industry achieved operating revenue of 10.53 trillion yuan in the first half of the year, up 1.29% year-on-year.

Chen Bin, executive vice president of China National Machinery Association, said that since the beginning of this year, the downturn in production and sales at the beginning of the year has continued to decline in the previous year. It has rebounded in March and has fluctuated since April. Product output has diverged, and the decline in efficiency indicators has narrowed and investment. The growth rate is slow and the price index is low.

Since the beginning of this year, the main economic indicators of the machinery industry have been operating at a low level, which has been greatly affected by the decline of the automobile industry. According to the data, in addition to the automobile industry, the industry’s 13 sub-sectors in the first half of the year achieved a total operating income of 6.55 trillion yuan, a year-on-year increase of 6.06%; the total profit reached 366.676 billion yuan, a year-on-year increase of 6.96%; both higher than the machinery industry and the national industry. The growth rate of related indicators. Among them, the growth rate of operating income of construction machinery, heavy mining machinery, food packaging machinery, and robotics and intelligent manufacturing industry exceeded 10%, indicating that the machinery industry is generally in good condition.

Chen Bin said that under the increasingly complex domestic and international development environment, the machinery industry is under pressure and the internal structure of the industry is further optimized. The transformation of new and old kinetic energy continued to advance, new kinetic energy development highlights, strategic emerging industries continued to exert strength, and breakthroughs were made in the independent research and development of major technical equipment, and innovation achievements were gradually put into use.

The machinery industry has developed steadily and its products have gained more recognition in the international market. In the first half of the year, the export of private enterprises in the machinery industry achieved a growth of 7.33%; the number of excavators exported by Xugong Group to North America increased exponentially; TBEA Group built the “Datka-Kemming” loss in Kyrgyzstan along the “Belt and Road” Substation project and Tajikistan Dushanbe Thermal Power Plant project; Yuchai Group engine successfully installed new ships in Korea, opening the door to the Korean market.

“Since this year, due to the influence of the automobile industry, the economic operation of the machinery industry has been under certain pressure. Although the main indicators are still in a reasonable range, the severity of the situation is more than expected at the beginning of the year.” Chen Bin said that the market is weak and the demand is insufficient. Since the beginning of the period, it has continued to plague the development of the machinery industry. Due to insufficient production, the production capacity utilization rate of the industry has declined, coupled with cost pressure, price transmission, and low enterprise efficiency. In addition, a large number of notes receivable and accounts receivable and the difficulty of recycling are among the most prominent problems affecting the production and operation of machinery enterprises.

Chen Bin said that the mechanical industry operating trend index in June was 98.24, which was below the critical value for the fourth consecutive month, indicating that there is still downward pressure on the industry operates in the future. At the same time, positive factors are also accumulating. Macroeconomic policies have increased support for manufacturing, industrial policies have been gradually implemented, and corporate confidence has begun to pick up. The industry will continue to move toward high-quality development after adjustment.

For example, the automobile industry, as the largest sub-sector of the machinery industry, is driven by the promotion of automobile consumption policies. The decline in production and sales in the second half of the year will gradually narrow and the operating situation will improve. As the second-largest sub-sector of the machinery industry, the electrical and electronic industry is unlikely to have a significant change in the production and sales of power generation equipment. However, the production and sales of power transmission and transformation products will be significantly improved by the relevant construction projects.

“It is expected that in the second half of the year, with the implementation of policies and measures to promote the potential of the domestic market, expand the expansion of final consumption, stabilize manufacturing investment, enhance the industrial base capacity and industrial chain level, and implement the tax reduction and fee reduction policy.” Chen Bin said that the economic operation environment of the machinery industry will be improved and the vitality of enterprise development will be further released. (From Economic daily newspaper)

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