Data: The composite PMI for transport infrastructure industry in June 2023 stood at 50.52, up 0.39 points on the month and 0.06 points on the year. The seasonally-adjusted composite index stood at 49.65, an increase of 1.14 points MoM and 0.02 points YoY. The index for production stood at 50.49, down 0.20 point on a monthly basis and 0.37 point on a yearly basis. The index for new orders rose 0.95 point month on month and 0.04 points year on year to 50.85. Infrastructure companies kept 14.04 days of raw material inventories on average in June, up 0.01 day MoM. (The number of days of raw material inventories is for reference only as the survey sample may have changed.)
Summary: Transport infrastructure companies improved this month. Notwithstanding a slow-down of the construction progress in some areas amid the impact of rainy weather, but players in the industry were enthusiastic about production. The number of new projects and labour force picked up on the month. Raw materials were mainly purchased according to project needs, and there were not much replenishing demands from the companies on insufficient funds.
SMM Survey:
A medium-sized infrastructure company in South China: The progress of our projects was a little slow this month, partially due to constant high temperature and heavy rain, but it will be speeded up in the future. Currently, we had no new project, but the number of our labour increased. We have good financial situation, with payment from Party A.
A large infrastructure enterprise in East China: A recipe for rising amount of steel consumption was mainly new projects to be purchased and lower purchase price than before. At present, all projects started in the first half of the year were completed, and we will start new projects at around September. Our funds are still very tight, so we dare not purchase more raw materials after high expenditure for projects started. We increased the number of workers force for a little bit, and will keep it higher after starting new projects in the second half of the year.
A medium-sized infrastructure company in Southwest China: We had new projects this month, and we also had increased procurement and less stockpile of inventory. We usually hired contract labours. Notwithstanding hot weather, our construction progress didn’t cool on arrangement of night work. We have quite a lot of projects, but our funding situation appears average with low returned money.
A medium-sized infrastructure company in North China: We suspended project in Guizhou now, mainly because Party A failed to pay. Currently, we keep the project in Jiangmen, Guangdong on track, and a project in Guangzhou is still under discussion. We figured that the overall demand remained sluggish, and few number of bidding appeared.
A medium-sized infrastructure enterprise in East China: We accelerated project progress this year amid more projects than last year, and the amount of raw materials also increased. We will have new projects and more workers.
