China's machinery sector recovers amid economic downturn

China's machinery industry maintained moderate growth last year under downward pressure, marking slow but steady recovery from a previous plunge, the China Machinery Industry Federation (CMIF) said Monday. The sector's revenues from main business totaled 20.4 trillion yuan (3.34 trillion U.S. dollars) in 2013, up 13.8 percent year on year and growing slightly faster than the 2012 pace, a research note from the CMIF showed. The figure, marking a record high, indicated that China continued to be one of the world's major manufacturers. Aggregate profits across the sector in 2013 increased 15.6 percent year on year to 1.41 trillion yuan. The growth rate was over ten percentage points higher than that of 2012. However, the sector's profits from main business grew only 13.8 percent year on year, indicating relatively weak real economy. The country's machinery industry slowed its pace in 2011 from the previous around 30-percent annual growth as a result of overcapacity and a lackluster economic situation. Cai Weici, CMIF's vice president, predicted the sector will grow at a moderate and healthy pace in 2014 as industrial restructuring and updating is expected.