Manufacturing Sees Sudden Decline: Can the Construction Machinery Recovery Be Sustained?

2014-01-02 578 0人评论
       It is understood that in December 2013, China's Manufacturing Purchasing Managers' Index (PMI) stood at 51%, down 0.4 percentage points from the previous month, marking the first decline since June 2013. Zhang Liqun, a researcher at the Development Research Center of the State Council, analyzed that the decline in the PMI indicates future economic growth will trend downward while remaining stable. So does the decline in the manufacturing PMI affect construction machinery?

    Overall, the steady growth trend of the economy in the fourth quarter has been further consolidated. The composite PMI and major sub-indices such as new orders and production maintained steady increases, with index levels higher than those of the third quarter and the same period last year. To maintain stable economic growth in 2014, macroeconomic regulation should focus on expanding domestic demand and prevent variables in exports from causing insufficient momentum for economic growth; it should accelerate the development of emerging industries and the service sector to offset the slowdown brought about by the adjustment of traditional and overcapacity industries; and it should accelerate the release of reform dividends, actively support enterprise development, improve business expectations, and enhance microeconomic vitality. Zhang Liqun analyzed that enterprises remain cautious about the future market, and it is expected that the industrial growth rate will trend downward in the future, the export growth rate may also decline, and economic growth still faces certain downward pressure.

    The Central Economic Work Conference also proposed that reform should run through all fields and every link of economic and social development, promoting development through reform, promoting the transformation of the growth model and structural adjustment, and promoting the improvement of people's livelihood. It can be foreseen that the various reforms already underway will inevitably accelerate in 2014. Experts believe that the implementation of reforms requires economic growth to reach a certain level as a guarantee, and deep-seated economic reforms may not be able to release enough dividends in a short period to drive economic growth in 2014.

    Although the PMI has seen a temporary decline, economists and institutional analysts remain optimistic when analyzing economic performance in 2014. The gradual release of reform dividends from the Third Plenary Session of the 18th CPC Central Committee will drive economic growth in 2014. In this way, projects such as new urbanization construction will be guaranteed, which can increase demand in the construction machinery industry and promote the industry's development.

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