China's machinery industry cools in 2015

BEIJING - The machinery industry in China is facing tough times as investment has slowed, but structural changes may offer a silver lining.

In 2015, the value-added output of the machinery industry increased 5.5 percent year on year, 4.5 percentage points lower than the growth rate seen in 2014, and slower than the 6.1-percent rise in the average value-added industrial output, data from the China Machinery Industry Federation (CMIF) shows.

"The slower-than-average growth rate in the machinery sector is very unusual and it highlights the difficulties the industry's facing," said Chen Bin, CMIF executive vice president.

Only 18 out of 64 main machinery products reported production growth.

Products relying on heavy investment as well as those facing overcapacity such as general machine tools saw the biggest decline, while output of consumption-driven products such as sports utility vehicles and those that promote energy efficiency continued to rise.

The changes were in line with China's transition to a consumption and innovation driven green economy.

Looking forward, the CMIF predicts that value-added output growth in the machinery industry will remain around 5.5-percent while exports from the sector may rise in 2016.