Machinery in rebound mode

The machinery sector in China began to rebound in the second quarter of 2009 due to the country's attempts to expand domestic demand after industry exports plunged since the second half of last year due to the global financial crisis, a report said.

Agricultural machinery and automobiles were the two sectors that benefited the most from the country's policy. The electrical, metallurgical and mining equipment sectors also witnessed growth, the China Machinery Industry Federation (CMIF) said in a report yesterday.

CMIF estimated that the output value of the industry would increase by 12 percent year-on-year throughout this year while profits would go up by 8 percent. It also warned that exports were still declining and over-investment in certain areas would lead to an imbalance between supply and demand.