SMM PMI for Machinery Sector Dips in March

SHANGHAI, Mar 30 (SMM) – The PMI for the machinery sector stood at 50.85 in March, down 2.12 points MoM and 1 point YoY. The seasonally-adjusted composite index stood at 47.95, down 10.29 points on the month and 0.21 point on the year. The index for production stood at 50.23, down 4.9 points on a monthly basis and 4.77 points on a yearly basis. The index for new orders fell 1.26 points month on month and 0.2 point year on year to 52.52. Machinery producers kept 19.6 days of raw material inventories on average in March, up 0.07 day MoM. The number of days of raw material inventories is for reference only as the survey sample may have changed.

Summary: Production in the machinery industry accelerated this month. New orders increased month-on-month as the launch of infrastructure and construction projects boosted the demand for construction machinery while the strong performance of new energy sector also supported machinery orders. Export orders increased slightly month-on-month. Most machinery enterprises restocked only as needed amid rising raw material prices, except for a few who stocked up.