Positive factors of construction machinery industry are emerging

In October, the total investment in related industries downstream of construction machinery increased by 17.69% year-on-year, and the growth rate increased by 0.64 percentage points from September. Among them, railway investment continued to increase substantially in the same month last year, reaching 82.2%. The recovery of downstream investment and peak season effect led to an increase in the number of hours spent on equipment. The Komatsu excavator utilization hours in October rose by 9.41% month-on-month. It is believed that the recovery of fixed investment has been gradually transmitted to the demand side of equipment. As downstream investment stabilizes, there is less room for sales decline in construction machinery, and rising equipment utilization also reflects that the demand side will not deteriorate. Considering that November has already entered the winter that is not conducive to construction, it is expected that the sales volume in November will only grow slightly.