2016 Annual Machinery Industry Economic Situation: Growth in Main Business Revenue Growth

[China Instrument Network Instrument Market] On the morning of February 14, China Machinery Industry Federation held an information conference on the economic operation situation of the machinery industry in 2016. Zhao Chi, Executive Vice President and Secretary-General of China Federation of Machinery Industry, Cai Weici, Special Advisor of China Machinery Industry Federation, Shi Jianhua, Deputy Secretary General of China Automobile Industry Association, and Tian Shukun, Deputy Director of Statistics and Information Department of China Machinery Industry Federation attended the conference .

Cai Weici pointed out at the press conference that the growth rate of the major economic indicators of China's machinery industry in 2016 has generally risen on the basis of the lower level of the previous year, and the growth rate has exceeded the expectation at the beginning of the year.

From the specific data point of view, there are mainly the following performance:

1. The growth rate of the value-added of machinery industry is higher than the industrial average. In 2016, the growth rate of the value added of machinery industry showed a trend of rising month by month, which was a year-on-year increase of 9.6% from January to December, 4.1% higher than the growth rate of the previous year, which was higher than the same period. The national industrial growth rate was 3.6 percentage points.

2. Increase in growth rate of main business income In 2016, the machinery industry realized a total of 24.55 trillion yuan in main business income, an increase of 7.44% year-on-year, an increase of 4.12 percentage points over the same period of the previous year, and 2.53 percentage points higher than the national industrial average over the same period. From the perspective of the year-round trend, the growth rate has increased month by month and has always been higher than the national industrial average over the same period.

3. Total profit continued to grow In 2016, the total profit realized by the machinery industry was 1.68 trillion yuan, an increase of 5.54% year-on-year, and 3.08 percentage points higher than the same period of last year.

At the same time, the output of most of the machinery industry’s products also continued to grow – of the 64 major mechanical products announced by the National Bureau of Statistics, there were 41 kinds of production growth, accounting for 64.1%; 23 kinds of output decline, accounting for It is 35.9%. The proportion of products that achieved output growth increased by 36 percentage points from the previous year.

There are both joy and worry. Although the industry’s overall economic recovery and growth rate rebounded significantly, other data do not seem to be optimistic:

1. The growth rate of investment dropped quickly In 2016, the investment in fixed assets of the machinery industry continued the downward trend of the growth rate in recent years. From January to December, the accumulated investment was 5.01 trillion yuan, an increase of only 1.7% year-on-year, which was lower than that of the whole society. The growth rate of investment in manufacturing industry was 6.4 and 2.5 percentage points, which fell sharply by 8 percentage points compared with the increase in investment in the machinery industry in the previous year. The growth rate has declined for five consecutive years.

2. The ordering situation is still not stable In 2016, the weak market demand for machinery industry did not improve significantly. From January to December, the accumulated orders for key enterprises in the machinery industry increased by 10.37% year-on-year. Although the data has recovered from the previous year, the ordering situation remains Instability, business orders, engineering, heavy-duty, mining machinery, petroleum machinery and other related industries are obviously insufficient. At the same time, the quality of orders has declined.

3. The total volume of foreign trade imports and exports continued to decline In 2016, the foreign trade of the machinery industry continued the weakness of the previous year, and the total volume of foreign trade continued to grow negatively. The total volume of imports and exports reached 647.45 billion U.S. dollars, a year-on-year decrease of 2.86%, of which imports were 272.7 billion U.S. dollars, down 1.82% year-on-year, and the decline was narrower than the previous year; exports were 374.8 billion U.S. dollars, down 3.6% year-on-year, and have been negative for two consecutive years. The trade surplus for the whole year was US$102 billion.

“Although the total profit of the machinery industry increased by 5.54% year-on-year last year, the profit rate of the main business of the industry was 6.87%, a decrease of 0.12 percentage points from the previous year, and it has been declining for two consecutive years; the company’s loss was 11.91%, an increase of 0.41 over the previous year. The percentage point increase, the loss amount increased by 6.25%, which reflects two problems: first, the total profit is increasing, but the main business profit rate is declining, which indicates that there is a tendency of the industry to fall into a virtual position; In the growth, but the loss of industry companies is expanding, which reflects the industry's survival of the fittest and differentiation, intensified, it is not a bad thing.” Cai Weici analysis.

(Original title: China Machine Association released 2016 machinery industry operation status)

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