What’s new: Domestic sales of Chinese excavators dropped 24.5% year-on-year in September — the smallest decline of any month this year — as a sluggish property market and sporadic Covid lockdowns continued to weigh on the sector, a state-backed industry group said.
But overseas demand more than made up for the shortfall, driving an overall sales increase of 5.5% year-on-year to 21,200 units, the largest monthly increase this year, according to the data, which was released by the China Construction Machinery Association (CCMA) on Tuesday.
Excavator exports surged 73% from the same time last year.
The context: Construction equipment sales data is closely watched by economists as a key barometer of economic activity.
Domestic demand for excavators has been subdued this year with sales to Chinese buyers dropping 48.3% year-on-year to 120,000 units from January to September, the CCMA data shows.
However, September’s domestic sales drop was the smallest decline this year, with some analysts predicting a rebound of demand fueled by government stimulus policies.
Meanwhile overseas construction has picked up pace in 2022 following an easing of Covid-19 restrictions, which has created increasing demand for excavators, analysts at China Lianhe Credit Rating Co. Ltd., a ratings agency, wrote in a note late last month.
In the first nine months, exports of excavators surged 70.5% year-on-year to 80,300 units.
Related: Sany Profit Falls 73.85% as Demand for Construction Gear Dries Up
Quick Takes are condensed versions of China-related stories for fast news you can use.
Contact reporter Guo Yingzhe (yingzheguo@caixin.com) and editors Jonathan Breen (jonathanbreen@caixin.com) and Flynn Murphy (flynnmurphy@caixin.com)
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