Nomura: Daily average sales in China’s factory automation market rebounded in October, but recovery was weaker than last year

Why did daily average sales rise when monthly sales fell?

Pneumatic equipment manufacturer Airtac derives roughly nine-tenths of its sales from China. The company reported that its October 2026 sales, denominated in renminbi, rose 18% year on year but fell 8% month on month.
The company said a longer holiday period in China reduced the number of operating days in October by 15% from the previous month. Assuming 20.5 operating days for the month, Nomura estimated that daily average sales rose 9% year on year and 7% month on month; adjusted for operating days, sales were stronger than the monthly total suggested.
Although the pneumatic equipment industry entered its traditional slow season, the month-on-month decline in sales in October was smaller than the decline in operating days, and the average daily value of shipments rose.

Nomura estimated that sales to the electronics industry rose 30% year on year in October; the industry accounted for 29% of Airtac’s sales. Sales to the battery industry rose 27% year on year and accounted for 15% of sales.
On a daily average sales basis, the battery business, which had remained weak through September, returned to month-on-month growth; the automotive business declined both year on year and month on month. Nomura estimated that sales to the automotive industry fell 8% year on year and accounted for 9% of Airtac’s sales.
Among other downstream segments, sales to the machine tool and packaging machinery industries rose 31% and 11% year on year, respectively, accounting for 7% and 8% of sales.

Nomura said the month-on-month increase in overall daily average sales in October was partly driven by seasonal factors and was smaller than the increase in the same month of 2025; a higher base in the same period last year also slowed year-on-year growth compared with September.
The bank therefore concluded that the rebound was broadly consistent with seasonal patterns, but the recovery was slightly weaker than in the same period last year. It will continue to monitor whether automotive- and battery-related demand can regain momentum.
Airtac expects China’s emphasis on smart manufacturing and industrial upgrading in its Fifteenth Five-Year Plan, together with economic stimulus measures, to support demand for pneumatic equipment. The company is optimistic about industry demand and its own overall growth in 2026, and believes the current recovery in demand could continue into 2027.