In October, the growth rate of domestic and external demand for machinery continued to decline. The growth rate of domestic and external demand for the machinery industry in October followed the downward trend seen in September, essentially confirming that the decline in industry demand from July to September was not influenced by the Olympic shutdown, but rather by the cooling of domestic and external economies, which led to a decrease in demand. It is estimated that the growth rate of sales output value for the machinery industry for the entire year will be around 27%, and the export growth rate will be around 20%.
Machine tool production has experienced negative growth for three consecutive months. Machine tools, also known as machine tools, reflect the overall prosperity of the machinery industry. Since August 2008, machine tool production has shown negative growth for three consecutive months, indicating that the demand in the machinery industry has indeed encountered some problems. In the future, with the decline in domestic investment growth, it is expected that the prosperity of the machine tool industry will continue to decline.
The demand for power transmission and transformation equipment remains relatively stable. In October, the growth rate of the domestic power transmission and transformation industry was relatively steady. Recent investment plans for the next 2-3 years announced by the State Grid and China Southern Power Grid indicate that the growth rate of domestic power grid investment in 2009 may exceed 50%, and the demand for power transmission and transformation equipment is expected to grow at a similar pace.
Maintain a neutral rating for the machinery industry; within the sub-sectors, maintain a neutral rating for construction machinery, heavy mining machinery, and machine tools. Electrical equipment (primarily including power transmission and transformation equipment) is relatively less affected by macroeconomic regulation and control, with steady growth, hence the rating remains at overweight.