(Yicai Global) Aug. 13 -- China's sales of excavation machinery, a key guide to infrastructure spending, jumped 11 percent in July from a year earlier amid a wave of product replacements as owners expect ongoing growth in fixed-asset investment.
Sales of all types of excavators made by 25 major Chinese manufacturers climbed to 12,346 units last month, according to data released today by the China Construction Machinery Association. For the January-to-July period, sales gained 14 percent to 149,553.
Some CNY6.2 trillion (USD872.3 billion) was invested in Chinese property development from January to June, an 11 percent jump from a year ago, but 0.3 percentage point slower than between January and May, according to the National Bureau of Statistics.
The strong sales figures are directly related to a hefty increase in real estate and infrastructure fixed-asset investment in the first half, Bohai Securities analyst Zhang Dongming said in a recent research note. Construction machinery bought around 2011 also needed replacing, he added.
Some 10,190 diggers were sold in China last month, up 9 percent, and 2,156 were exported, an increase of almost 21 percent. In the seven months ended July, domestic sales rose 12 percent to 135,062, while overseas shipments surged 38 percent to 14,491.
Chinese excavator sales are likely to grow by about 10 percent this year, while next year's sales will be flat or decline marginally, Sinolink Securities analyst Wang Huajun said in a research report.