Demand for(power transmission) investment goods inflation pressure and improve profitability trend may be very small. Attack caused by construction machinery to turn, return to defense situation, construction machinery is expected in mid-August is expected to rise.

Given the economic boom remains a high level, the higher absolute level of prices, the basic policy of the next few months there is no space to relax. Looking in August, despite the short-term funds to ease the tension slightly, but inflation risks are expected to heat up again, the overall estimated construction machinery is expected to rise, tightening since mid-June, the intensity of the afterburner again facing the possibility of slowing. In this environment, as the demand for investment goods, machinery trend does not appear to improve.

Overseas: recovery twists and turns, the outlook is not optimistic

European debt problems intensified as the economic downturn is expected to become stronger, but because of the expected launch QE3 lead to a weaker dollar and inflation expected to remain strong. U.S. core CPI, the chain is close to critical level, the future United States and European countries will face more and more severe stagflation dilemma. China's machinery exports are expected to continue to maintain the previous slow decline.

Construction machinery is expected in mid-August is expected to rise

Engineering machinery, railway equipment, and other special mechanical performance of three sub-sectors does not match with the previous forecast. The performance of railway equipment in the machinery sub-sectors in the bottom place in late July due to the motor car rear-end accident. Including construction machinery and other special mechanical performance difference comes mainly from differences in market size, investment style dish, is expected in mid-August, construction machinery is expected to rebound, the performance of the two sub-sectors will meet again before(universal joint) our expectations.