(ATF) China’s excavator producers reported surging sales in June, foreshadowing a quick demand recovery amid a construction boom in the country, industrial data showed.
China's 25 leading excavator makers sold a total of 24,625 machines last month, up 63% year on year, according to the China Construction Machinery Association.
The figures are an indication that infrastructure activity in the country is on the rise. China has sold billions of yuan of bonds to fund construction and development projects as a way of pulling the economy out of decline following the coronavirus outbreak.
In breakdown, 21,724 excavators were sold in the domestic market, soaring 75%, while exports of the equipment rose 7.6% to 2,901.
During the first half of the year, domestic excavator sales of the 25 producers jumped 25% to 155,893, while overseas sales went up 17.8% to 14,532.
Robust sales of the digging machines came on the back of special local government bonds issuance, which puts a focus on infrastructure construction, Sinolink Securities said in a research note.
In a bid to revive the economy, China has been speeding up the construction of planned key infrastructure projects and has launched new projects for public health, emergency materials supply, 5G networks and data centres.
Sinolink Securities forecast the sector will sustain a rapid expansion in July.