(Yicai Global) Aug. 13 -- China’s excavator sales rose by more than half for a fourth straight month in July as the country pushes ahead with construction projects.

Digger sales climbed 55 percent to more than 19,100 last month from a year ago, according to data from 35 firms released by the China Construction Machinery Association. Domestic sales soared 60 percent to more than 16,200, while exports jumped 33 percent.

July is usually an off-season for excavator purchases, but China's expanding real estate and infrastructure development has changed that.The boom in demand is expected to continue in the second half.

Western Securities gave two reasons for that in a recent research report. First, some CNY2.25 trillion (USD324.3 billion) of special bonds were issued during the first seven months of this year to support infrastructure projects. Second, commercial land transactions rose in the first half, suggesting the advent of new building works.

The strong demand for earth-moving equipment is already showing up in corporate earnings reports. Net profit at Sanyi Heavy Industry, one of China’s largest machinery makers, rose more than eight times to CNY1.2 billion (USD172.9 million) in the first half mainly due to busy construction in fields such as urban pipe networks and rural water conservancy. Its revenue soared 71 percent.

Excavator sales may reach nearly 300,000 units this year, a gain of over 25 percent, Zheshang Securities said in a recent research report. In the first seven months of the year, they rose 27 percent to more than 189,500.

Editor: Emmi Laine