For information only - not an official document
9 December 2014
Re-issued as received
Global manufacturing growth slows as recovery stalls in Europe, recession deepens in Latin America - UNIDO report
VIENNA, 9 December (United Nations Industrial Development Organization) - World manufacturing has slowed down further as Europe's recovery has stalled and emerging industrial economies, particularly in Latin America, have experienced low growth, says a report published today by the United Nations Industrial Development Organization (UNIDO).
The report states that global manufacturing output grew by 3.0 per cent in the third quarter of 2014, compared to the same period in the previous year.
The overall growth of the manufacturing output of industrialized economies has fallen from 1.5 to 1.2 per cent in the second quarter of 2014. The manufacturing output of developing and emerging industrial economies increased by 6.9 per cent, lower than the 7.3 per cent increase seen during the second quarter.
Overall in 2014, the rate of growth of world manufacturing output has been consistently falling. The growth rates were 4.1 and 3.4 per cent for the first and the second quarters respectively. The major contribution to the global growth in the third quarter was made by China, the United States and ASEAN countries.
The manufacturing output of China rose by 9.1 per cent, Indonesia by 6.2 per cent, Malaysia by 5.3 per cent, the United States by 4.4 per cent, and Viet Nam by 7.6 per cent. However, manufacturing output dropped in key East Asian economies, namely Japan and the Republic of Korea. In India, manufacturing growth in the third quarter was also low, at less than 1.0 per cent, but the new inflation controls and the return of capital investment are creating better prospects.
European economies registered a low growth of manufacturing output of 1.3 per cent. The manufacturing output of Italy fell by 1.1 per cent, whereas a nominal growth of 0.1 per cent and 1.0 per cent was observed in France and Germany respectively. Relatively low growth was observed in Belgium, the Netherlands and Spain. The manufacturing output of the Russian Federation rose by 1.8 per cent.
Falling oil prices and the spread of deflation across Europe indicate a weak demand for manufacturing input as well as products, while ongoing geopolitical tensions and reciprocal economic sanctions have adversely affected the business environment and consumer confidence across the continent.
The low growth of industrialized countries has had a negative knock-on effect on manufacturing production in emerging industrial economies. Their manufacturing output grew at a marginal rate of 0.1 per cent in the third quarter of 2014. The recession has deepened in Latin America where the manufacturing output has dropped by 1.2 per cent in Argentina, 5.3 per cent in Brazil, 1.4 per cent in Chile, 11.0 per cent in Colombia and 3.8 per cent in Peru.
As for sector-wide perspectives, low growth was observed in the production of consumer goods across all industrialized countries. Developing and emerging industrial economies performed well in machinery and equipment sectors, indicating a steady shift to high-tech industry among the countries in this group. Due to the decline in exports to industrialized market, the production of readymade garments slowed in several developing economies.
The full report is available here
UNIDO regularly releases the statistics on current growth trends of global manufacturing at country and regional level.
UNIDO maintains an international industrial statistical database in accordance with the mandate of the United Nations Statistics Commission. Data can be downloaded through online access or obtained through CD products and publications.
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For more information, please contact:
UNIDO Chief Statistician