China's construction machinery sales grew rapidly from March to may, thanks to the surge in demand brought by the rapid and stable recovery of the domestic economy in June and the country's increased investment in infrastructure construction in various fields. The reason behind the growth is that the tone of the government's increased infrastructure investment throughout the year will not change.

　　It is reported that infrastructure investment increased rapidly in May to a high level since 2018, and real estate investment recovered steadily. In May, investment related data of construction industry continued to recover: the completed amount of infrastructure investment was 1.76 trillion yuan, an increase of 10.9% at the same time, and the monthly growth rate reached the highest level since 2018.

　　The investment in the three major infrastructure branches, namely, electric heating, gas and water, transportation, postal storage and public water conservancy, was 0.32 trillion yuan, 0.60 trillion yuan and 0.84 trillion yuan respectively, up 28.8%, 11.2% and 5.1% year on year respectively.

　　The investment in railway, highway, municipal construction and water conservancy is 0.077, 0.45, 0.11 and 0.66 trillion yuan respectively, with a year-on-year increase of 7.4%, 15.4%, 6.7% and 5.3% respectively. The growth rate of investment projects led by local governments such as highway and municipal construction has been further improved.

　　The completed investment in real estate development was 1.28 trillion yuan, an increase of 8.4% at the same time, of which the investment in construction engineering was 0.71 trillion yuan, an increase of 9.3% at the same time, and the real estate investment recovered steadily. In terms of the combination of real estate and infrastructure, the total investment in the construction industry was 2.15 trillion yuan, up 8.1% at the same time, reaching a high level since 2018. In May, the newly started area of real estate was 218 million square meters, the completed area was 44 million square meters, and the sales area was 147 million square meters, with a year-on-year growth rate of 2.5%, 6.2% and 9.7% respectively. In contrast, the recovery of real estate completion and sales is stronger. On the one hand, the construction progress has been affected by the flood disaster in South China since May. On the other hand, since the end of 2019, the completion should have entered the recovery cycle. After the epidemic, the completion demand is released intensively and the recovery is stronger.

　　In addition, the rain weather led to the decline of the industry prosperity and the improvement of the prosperity in the western region: in recent years, with the continuous precipitation in the southern region, the construction industry was seriously affected, and the early cycle building materials plate, including waterproof, cement, water reducer, etc., showed weak performance. Specifically, the basic data of cement industry shows that the clinker storage capacity ratio has increased rapidly, from 52% at the beginning of May to the current level close to 60%; the mill operation rate has decreased, from 68% to 65%, and the industry prosperity index has been revised back. In contrast, the northwest and southwest regions are less affected by the rain weather, and the regional prosperity is relatively good. We believe that the current construction demand of the construction industry still exists. Subsequently, with the rain weather gradually coming to an end, the construction demand will be released again, and the prosperity of the cement industry will reach a new height.

　　With the orderly recovery of various projects, the state will increase investment in traditional infrastructure construction, driving the rapid growth of market demand for construction machinery, especially earth moving machinery, bulldozers, excavators, hoisting machinery, concrete machinery, aerial work platforms, etc. In addition, with the gradual expansion of new infrastructure, new infrastructure is expected to become a new driving force for China's economic growth, and the market demand of construction machinery industry will expand again,