According to the National Development and Reform Commission, China’s machinery industry realized a total profit of 138.9 billion yuan in the first three quarters of this year, down 0.4% year-on-year. This is the first negative growth since 2000. However, the NDRC expects that the total profit of the machinery industry will be basically the same as last year.

The data shows that the total industrial output value, sales revenue and export delivery value of the machinery industry in the first three quarters of this year were 3 trillion yuan, 2.8 trillion yuan and 479.3 billion yuan respectively, up 20%, 20% and 33% respectively. The production and sales rate is 97%. The main reason for the imbalance between profit growth and production and sales growth is the rapid increase in raw material prices and the decline in car prices.

According to relevant experts from the National Development and Reform Commission, the state's policy of vigorously supporting agriculture and the enthusiasm of farmers to adopt advanced production technologies have made the production and sales of large and medium-sized tractors, small tractors, agricultural machinery and other farmland operating machinery warm up. Driven by the demand for heavy industrial structure adjustment, major equipment such as power generation and transformation equipment, petrochemical equipment, and metallurgical mining equipment continued to maintain a relatively high growth rate. The technical level of Cnc Machine tools has been recognized by users, and the units using domestic equipment in the key processes of major equipment and important product manufacturing have shown an increasing trend. Basic machinery such as instrumentation and mechanical basic parts have been significantly increased by the main engine. Durable consumer goods such as digital cameras are rapidly evolving to meet the needs of the camera market. Affected by national control measures, demand for construction machinery continued to be weak and growth was slow, but some models have shown signs of recovery in the near future. The appreciation of the RMB exchange rate against the US dollar has not had a major impact on the whole industry, and exports still maintain rapid growth. Among them, the export value of construction machinery industry increased by 62% year-on-year, the export volume of automobile industry increased by 52%, and the export value of machine tools increased by 35%.

The National Development and Reform Commission believes that with the fall in steel prices, the pressure on the cost of machinery products has eased, and the trend of sales revenue and profitability has improved month by month. The machinery industry in the fourth quarter can still maintain a stable and rapid development trend. It is expected that the annual industrial output growth rate will be About 20%, the total profit is the same as last year.

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