Posted on 19 Aug 2022
Production of the four major home appliances during January-July among Chinese makers saw two diverse trends appear, with output of air-conditioners and televisions growing on year, while that of washing machines and refrigerators declining moderately, according to new data released by China's National Bureau of Statistics (NBS) on August 17.
Among the four key home appliances, production of air-conditioners was the highest in volume in the first seven months of 2022, with output gaining by 1.1% on year to 140.8 million units. For July alone, production of air-conditioners edged up by 0.6% on year to 18.6 million units, according to the NBS data.
In July, China's home appliances exports slipped by 4.6% on year to 309.6 million units. Over January-July, 2 billion units were exported, down 7.3% on year, according to data from China's General Administration of Customs.
In this year's first seven months, domestic sales of white goods remained dull, as the resurgence of COVID-19 cases restrained consumer spending in the domestic market and export volume also plunged as the service life of durable products were around 10 years, according to a Shanghai-based analyst.
The sales and production of home appliances are likely to remain weak in coming months, mainly due to softening demand among both domestic and overseas buyers, the source commented.
With many governments and central banks abroad tightening monetary policies, the demand from overseas buyers is likely to wane, so domestic consumption will be the key driving force for white goods sales for the remainder of this year. However, sales of residential housing projects in China have fallen sharply, which in turn will weigh on the sales of appliances to be installed in them, she added.
In the first seven months, China's property sales totaled 781.8 million sq m, down by 23.1% on year. Within this, residential housing sales dropped by 27.1% on year, according to NBS's data.
Besides, under the continuous impact of the pandemic, it is difficult for consumer confidence to recover in the short term, which will also dampen sales of home appliances, she elaborated.
Source:Mysteel Global
