The mechanical industry is gradually recovering, but insufficient orders have become the primary difficulty.
Category: Industry News
Aug 27,2021
On August 7, Chen Bin, Executive Vice President of the China Machinery Industry Federation, stated at the information release conference on the economic operation of the machinery industry in the first half of the year that it is expected that the economic operation of the machinery industry for the whole year will show a trend of low in the front and high in the back, gradually recovering, with indicators such as industrial added value, operating income, and total profit expected to achieve slight positive growth.
Chen Bin stated that due to the impact of the COVID-19 pandemic, production operations in the machinery industry suffered a huge shock at the beginning of the year, with major economic indicators declining in the first two months. However, starting from March, there has been stabilization, and after entering the second quarter, a clearer trend of recovery has emerged.
"From June's data, all five major categories of national economic industries involved in machinery have achieved positive growth," Chen Bin added.
Looking ahead to the second half of the year, as macroeconomic policy effects are gradually released, demand in the machinery industry market will continue to recover and operational environments will improve. However, from three driving factors—investment, consumption, and foreign trade—the economic operation situation of the machinery industry remains severe. Additionally, there is still significant instability and uncertainty regarding overseas pandemics; thus international economic and trade conditions are becoming increasingly severe and complex. The machinery industry still faces considerable downward pressure.
"The China Machinery Industry Federation predicts that if overseas pandemics can be effectively controlled in the second half of this year, it is expected that China's automotive market production and sales will decline by about 10% year-on-year; it is expected that operations in the electrical appliance industry will remain relatively stable with slight revenue growth; it is anticipated that key economic indicators for petrochemical general equipment will be lower than last year; it is expected that heavy mining industries will maintain a certain degree of growth throughout the year; it is anticipated that declines in machine tool industries may narrow in the second half; it is expected that agricultural machinery industrial growth rates will exceed those of previous two years; and it is anticipated that engineering machinery industries will maintain a certain degree of growth throughout this year.
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