1 December 2011 Global manufacturing rose slightly in the third quarter of this year despite fears that the world economy could plunge into another recession as a result of instability in European financial markets, the United Nations Industrial Development Organization (UNIDO) said in a report released today.
The growth in manufacturing output in major economies indicates that a further worldwide downturn in industrial production is not imminent, UNIDO said in its quarterly report on world manufacturing production.
Global manGlobal manufacturing output rose by 5.5 per cent overall, compared to the same period last year, spurred mainly by growth in developing countries where manufacturing output increased by 13 per cent.ufacturing output rose by 5.5 per cent overall, compared to the same period last year, spurred mainly by growth in developing countries where manufacturing output increased by 13 per cent.
China’s manufacturing, which accounts for almost half of all developing countries combined, grew by 14.5 per cent in the third quarter, while the output of industrialized countries rose by an average of 3.3 per cent.
United States manufacturing grew by 4.1 per cent, while Japan’s industrial performance improved significantly with output rising by 4.3 per cent, compared to the second quarter of this year. Japan’s output is, however, still below last year’s levels.
The impact of the Eurozone’s financial instability has so far been limited to a few countries, UNIDO noted in its report.
In Europe, strong growth in manufacturing output was observed in Austria (7.2 per cent), the Czech Republic (5.5 per cent), Germany (9.6 per cent) and Sweden (6.4 per cent).
Relatively higher growth performance was observed in Eastern Europe. The manufacturing output of Poland and Romania grew by 6.5 per cent and 6.1 per cent, respectively. Russia’s manufacturing grew by 7.2 per cent.
Moderate growth was observed in France and the United Kingdom, but Italy’s production dropped. Similarly, manufacturing output fell in Greece, Portugal and Spain.
Among developing countries, strong growth was seen in Malaysia (5.2 per cent), Turkey (7.8 per cent), and Viet Nam (7.4 per cent).
Growth in leading developing economies was, however, moderate. Argentina’s output increased by 3.8 per cent, Brazil by 0.1 per cent, India by 3.1 per cent, and Mexico by 4.6 per cent.
The report also presents the growth figures of manufacturing sectors. Industrialized countries have performed relatively well in high-technology sectors, such as machinery and equipment, and the production of motor vehicles and office and computing machinery, while developing countries dominated the growth figures for the processing of primary products, such as food and beverages, textiles, garment apparel, and fabricated metal products.
News Tracker: past stories on this issue