The operating rate of construction machinery, a key indicator of construction engineering performance, saw an increase in October, buoyed by stimulus policies implemented nationwide in China. According to the latest data from the State Information Center, in October, the operating rate of construction machinery increased by 1.6 percentage points compared to the previous month. The total equipment working hours have been steadily increasing for five consecutive months, with a notably accelerated growth rate in October.
Meanwhile, the total construction area nationwide has expanded. In October, out of the 31 provincial-level regions in the Chinese mainland, 28 saw a month-on-month growth in the operating rates of construction machinery.
In particular, over 10 provincial-level regions including Anhui, Henan, Hubei and Liaoning have witnessed a continuous increase in construction machinery operating rates for three consecutive months.
"The overall operating rates have increased rapidly since the start of October. The status of various equipment shows that most ongoing projects have entered the later stages, with finishing work steadily progressing. At the same time, the number of new construction or expansion projects has also kept increasing," said Huang Luchuan, an analyst focusing on the "excavator index" with the Rootcloud, an industrial Internet cloud platform solution provider.
Regionally, the most notable increase in construction machinery operating rates is seen in the central and eastern parts of China.
In Changxing County of Huzhou City, east China's Zhejiang Province, an aluminum company is operating around the clock.
"Currently, we have completed 80 percent of the whole project. We anticipate reaching full production capacity early next year. Once in full operation, the total output value is expected to exceed 4 billion yuan (556.8 million U.S. dollars) per year," said Xu Zhiqiang, general manager of Zhejiang Boao Aluminum.
Since the start of October, a total of 108 projects in emerging industries including smart vehicles and key components, new energy, smart equipment, digital industries and biopharmaceuticals have commenced or completed construction in Changxing County, with a combined fixed asset investment reaching 37.04 billion yuan (about 5.16 billion U.S. dollars).
"In the fourth quarter, with the accelerated implementation of a package of incremental policies and strengthened financial support, the formation of physical workload of engineering construction is expected to accelerate. This will play a more active role in uplifting the confidence of key players in the relevant industries and fostering economic growth in the fourth quarter," said Wei Ying, deputy director of the Big Data Development Department at the Information Center of the National Development and Reform Commission.
China sees improved engineering construction performance in October
