China's machinery industry reported a profit of 127.8 billion yuan in the first half of the year, up 45.6 percent on the previous year.

The total output of the machinery sector reached 2549.8 billion yuan, up 28.9 percent, said a report released by the National Development and Reform Commission (NDRC) on Thursday.

The report attributed the sharp rise to new government policies which have supported the machinery industry, market demands and exports. Better operation environment, sufficient energy and material supply, and steady steel prices also boosted the sector, said the report.

The construction material sector realized a profit of 21.45 billion yuan, up 53.2 percent, according to the report.

Despite the great profit gains, China's construction material industry faces the risk of growing too fast amid increasing output and soaring investment, it said.

The report forecast a continuous upward curve in the machinery sector over the rest of the year.

Source: Xinhua