Since the beginning of this year, the effect of the national macroeconomic policy “combination punch” has continued to be released. In the first quarter, the gross domestic product (GDP) increased by 5.4 percent year on year, and by 1.2 percent quarter on quarter from the fourth quarter of last year. The market expectations of the general machinery industry have improved, the confidence in the industry’s development vitality has increased, and operating revenue, profits, main product output, and import and export have all achieved year-on-year growth, indicating a good start to the industry’s development.
Industry Economic Operation Situation
Growth in Operating Revenue, Profits, and Main Product Output
In the first quarter, the general machinery industry saw year-on-year growth in operating revenue, profits, and main product output. The growth rates of revenue and profit indicators were higher than the national industrial average but lower than those of the machinery industry. According to data from the National Bureau of Statistics, in the first quarter, 8,838 above-scale enterprises in the general machinery industry achieved an operating revenue of 238.962 billion yuan, a year-on-year increase of 6.12 percent, 2.72 percentage points higher than the national industry; the total profit was 13.538 billion yuan, a year-on-year increase of 3.45 percent, 2.65 percentage points higher than the national industry. The industry’s revenue growth rate was significantly higher than the same period last year and the whole of last year, and the total profit reversed the downward trend since the second quarter of last year, achieving positive growth.
National industrial situation: According to National Bureau of Statistics data, in the first quarter, the added value of above-scale industries nationwide increased by 6.5 percent year on year, 0.7 percentage points faster than the whole of last year. The added value of mining increased by 6.2 percent year on year, that of manufacturing by 7.1 percent, and that of production and supply of electricity, heat, gas, and water by 1.9 percent. The added value of the equipment manufacturing industry increased by 10.9 percent year on year, 3.2 percentage points faster than the whole of last year; the added value of high-tech manufacturing increased by 9.7 percent, 0.8 percentage points faster.
Exports Maintain Rapid Growth, Imports Turn to Growth
In the first quarter, the general machinery industry achieved year-on-year growth in exports, imports, and trade surplus, with growth rates accelerating compared to the same period last year. The year-on-year growth rate of imports reversed the previous consecutive year-on-year decline and turned to growth. The rapid growth in imports and exports is somewhat related to the uncertain risks brought by the U.S. “tariff war.” The industry seized the import and export time window to avoid risks, promoting the maintenance of rapid export growth and the turn of import growth from negative to positive, especially the significant growth in both exports and imports to the United States.
The top ten countries or regions for exports of key products in the general machinery industry in the first quarter are: the United States, Russia, Indonesia, South Korea, Japan, Germany, Vietnam, India, Thailand, and the United Arab Emirates (UAE). Among them, exports to the United States increased by 8.32 percent year on year, compared with a year-on-year decrease of 7.7 percent in the same period last year; exports to Russia increased by 12.23 percent; exports to Indonesia increased by 16.01 percent. The top ten countries or regions for imports are: Germany, Japan, the United States, Italy, South Korea, Switzerland, France, Sweden, Malaysia, and the United Kingdom.
Among them, imports from Germany increased by 0.57 percent year on year; imports from Japan increased by 1.95 percent; imports from the United States increased by 11.69 percent year on year, compared with a year-on-year decrease of 3.11 percent in the same period last year.
Article source: Machine Tool Business Network (https://www.jc35.com/)