Japan Construction Machinery Shipments Seen to Grow at Slower Pace

Tokyo, Aug 21, 2008 (Jiji Press) - Construction machinery shipments by Japanese manufacturers in fiscal 2008 are expected to increase at a slower pace than originally expected due to a sharp fall in domestic demand, an industry group said Thursday.

In the year through March 2009, the shipments are now projected to rise 2 pct from fiscal 2007 to 2,488.8 billion yen, the Japan Construction Equipment Manufacturers Association said.

The association previously forecast that shipments by its 76 member companies would total 2,607.7 billion yen in fiscal 2008.

Still, the new forecast would mark the seventh straight year of increase.

For the domestic market, the industry group slashed its shipment forecast to 705.7 billion yen from 806.5 billion yen amid a decrease of public works projects and sluggish housing investment in Japan.

The association lowered its forecast of construction machinery exports by the Japanese makers to 1,783.1 billion yen from 1,801.2 billion yen. While shipments to Asian countries like China are expected to remain brisk, shipments are seen to continue falling in North America and to be weak in Europe.

In fiscal 2009, the association projects the total shipments to reach 2,576.9 billion yen to mark the eighth consecutive year of growth. Domestic shipments are seen totaling 680.2 billion yen and exports, 1,896.7 billion yen.

In a press conference Thursday, Michijiro Kikawa, chairman of the industry group, said demand in industrialized countries, including Japan, is expected to stay sluggish and that market growth in emerging economies is to somewhat slow down.