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Feeling economic momentum from excavator index

Aug 29, 2022

Behind the small excavator is the rapid progress of infrastructure construction and the continuous improvement of investment efficiency and confidence

The "excavator index" that integrates big data and describes the progress of infrastructure investment and construction through digging and shoveling is the best indicator to observe the physical workload of investment. The "excavator index" released not long ago shows that the average monthly operating rate of national construction machinery in July was 65.4%, higher than 60.37% from January to June; In the first half of the year, the total working hours of excavators increased by 6.86% year-on-year... The rising index shows that the activity of various infrastructure construction in China has continued to rise and new projects have been intensively implemented since the beginning of this year, which has become a vivid footnote to steady investment and steady growth.

Liugong series national fourth excavator

Excavator helps infrastructure construction

The trend reflected by "excavator index" can be mutually confirmed with relevant statistical data. According to the data released by the National Bureau of statistics, from January to July, infrastructure investment increased by 7.4% year-on-year, 0.3 percentage points faster than that from January to June. From the perspective of investment leading indicators, 134000 new projects were started in the first half of the year, an increase of 26000 over the same period last year; The planned total investment of new projects increased by 22.9% year on year; The funds in place for investment projects (excluding real estate development investment) increased by 18.8%. This fully shows that the efforts to promote macro policies and moderately advance infrastructure investment have achieved remarkable results. In fact, it takes a certain period from the investment to the physical workload of the project. I believe that with the accelerated implementation of the package of policies and measures to stabilize the economy, the effective investment scale will be further expanded.

Infrastructure is an important support for economic and social development. Major infrastructure projects attract a large amount of investment, have a long industrial chain, and create many employment opportunities. They are important to stabilize the macro-economic situation.   The meeting called for giving play to the key role of effective investment, strengthening land, energy use, environmental impact assessment and other guarantees, and comprehensively strengthening infrastructure construction. From the central government to the local government, specific arrangements have been intensively implemented one by one to speed up the construction of new infrastructure while improving the level of traditional infrastructure. On the one hand, we have focused on the strong and weak points of the weak points. The construction of 102 major projects in the "14th five year plan" is accelerating, and more than 2600 projects have been decomposed and implemented in a stable and orderly manner; On the one hand, we have made efforts to adjust the structure and increase the stamina. We have comprehensively launched the project of "counting data from the East and calculating data from the west". There are more than 3100 projects under construction in the country's "5g + industrial Internet", and a total of 1.854 million 5g base stations have been completed and opened... This not only provides strong support for stabilizing the economic market, but also contributes to the construction of a modern infrastructure system.

At present, China's economy is in the key window of stabilization and recovery. We should seize important time nodes, consolidate the foundation for economic recovery, strive to stabilize the macro-economic situation, and continue to play the key role of effective investment in economic recovery and development. Under the condition that insufficient effective demand restricts the current economic recovery, to improve the effectiveness of investment, it is necessary to make timely and decisive decisions and implement them without delaying the opportunity. We should continue to promote the implementation of policies and their effects, promote the efficient operation of the coordination mechanism for effective investment in important projects, and form more physical workload as soon as possible on the premise of ensuring project quality. At the same time, do not carry out flood irrigation, and do not "wash the mud when the radish is fast". The projects to be supported should benefit both the present and the long term. They should mainly be invested in infrastructure and new infrastructure such as transportation, energy, logistics, agriculture and rural areas, so as to strengthen the stamina for the continuous expansion of effective investment. In addition, we should make good use of effective investment in a market-oriented manner. For example, we should give full play to the leading role of special bond funds. In the first half of this year, special bonds stimulated investment and played an important role in supporting steady growth. Total capital formation drove economic growth by 0.8 percentage points.

He who observes the trend is wise. Although the economic operation still faces some outstanding contradictions and problems, the fundamentals of China's stable and long-term economic development have not changed. Behind the small excavator is the rapid progress of infrastructure construction and the continuous improvement of investment efficiency and confidence. Such positive changes contain new driving forces for China's economy to move forward. We believe that as long as we rise to the challenge, work hard, and do our own work firmly, we will be able to consolidate the trend of economic recovery and keep the economic operation within a reasonable range.