Factory Equipment Machinery Sector: Chart of the Week - Chinese statistics reflect post-COVID-19 recovery

As COVID-19 is easing in China,March data showed recovery in industrial product production the Chinese government has been fostering. Demand for factory automation equipment & robots for capacity expansion looks likely to continue in H120.

20 Apr 2020

China major industrial goods: Production growth rate yoy (monthly)

Source: National Statistics Bureau

The figure charts the production growth rate year over year of China major industrial goods, including mobile telephones, integrated circuits, motor vehicles, and industrial robots. The time period shown is from February 2015 to February 2020.

China-related data showed strength again last week

Toward the end of last week, China released production statistics and its credit impulse for March. Amidst easing of the COVID-19 situation, data showed solid recovery in production of industrial products the Chinese government has been fostering. Based on our inquiries, we expect a wave of recovery in April-May. Better demand for FA equipment and robots for capacity expansion looks likely to continue in H1 2020.

China’s statistics office released preliminary March production data on 17 April

In March, mobile phone handset production declined 9% (down 32% from the October-December average), auto output declined 43% (down 42%), semiconductor output rose 20% (up 12%), robot production rose 13% (up 3%), and production of metal-cutting machines declined 22% (up 18%). March production of several products thus bettered October-December averages, showing solid recovery. Expanding production of robots and machine tools may indicate capacity expansion investment has started again in some business areas.

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