(Yicai Global) Nov. 12 -- Excavator sales in China plunged 30 percent in October from the same period last year, their biggest monthly drop this year, as real estate curbs, tighter liquidity, less infrastructure projects and the hike in raw material prices hamper demand. Exports, however, were on the rise as overseas economies make a comeback.

Some 18,964 diggers were shifted last month, the seventh straight month of declines, according to the China Construction Machinery Association. Of this, 12,608 were sold in the China market, a year on year drop of 47.2 percent, while overseas orders soared 84.8 percent to 6,356.

In the first 10 months, domestic sales rose 3.47 percent year on year while foreign sales nearly doubled, said the report, which polled 25 manufacturers.

The strong overseas demand is a result of low interest-rate policies and the shift to working from home in much of Europe and the US, which has led to a boom in the realty market and an acceleration in building new properties, Luo Zhiheng, vice director and chief macro analyst of a research institute affiliated with Yuekai Securities, told Yicai Global.

Many foreign manufacturing bases for excavators have yet to fully re-open, leading to a shift in orders to China, which is another reason for the skyrocketing export volume since the fourth quarter of last year, he said.

Domestic sales of diggers, meanwhile, have been impacted by higher leveraging requirements for property developers and local governments which has meant less investment in real estate and infrastructure, Luo said. The floods in northern China and debt defaults by a number of developers might also have aggravated sales last month, he added.

Sales should pick up in the fourth quarter as the accelerated issuance of special bonds will strongly support major infrastructure projects, according to Zheshang Securities. Infrastructure investment should grow 10 percent in the fourth quarter to CNY500 billion (USD78.2 billion), according to Ming Ming, chief analyst at CITIC Securities.

Editors: Liao Shumin, Kim Taylor