Heavy machinery sales dropped in China
China's sales of road pavers and bulldozers dropped nearly 30% year-on-year in May due to a decrease of infrastructure investment.
Sales of loaders and excavators nationwide were also down 25.77% and 23.92%, respectively.
Sales drop in May was caused by a contraction of investment in transportation facilities. Analysts of CHINACIR predicted that China's investment in road and railway construction will decline in 2012.
Downward sales might squeeze some uncompetitive companies out of the market and lead to more mergers and acquisitions in industry.
Despite sluggish business in general, excavators sold by Sany Group, China's largest machinery manufacturer, hit 1,333 units in May, up 8.64% year-on-year.