Manufacturing growth accelerates worldwide; industrialized economies achieve highest growth in post-crisis period

VIENNA, 6 December (United Nations Industrial Development Organization) – Manufacturing growth has accelerated, indicating a further strengthening of worldwide economic recovery, according to a report released by the United Nations Industrial Development Organization (UNIDO) today.

The report, which is based on figures obtained for the third quarter of 2017, states that global manufacturing output rose by 4.5 per cent in the third quarter of 2017, compared to the same period of the previous year, suggesting that the upward trend observed in world industrial production since the beginning of 2016 has gained further strength.

Manufacturing output rose in all major industrialized economies and in developing and emerging industrial economies. This is the first time for several years that no negative trend in manufacturing production is being reported in any major world economies or regions.

Industrialized economies have achieved the highest growth of manufacturing output in the post-crisis period. The manufacturing output of industrialized economies rose by 3.1 per cent in the third quarter of 2017, compared to the same period of the previous year.

For the first time for several years, the growth rate of manufacturing output in European industrialized economies exceeded 4.0 per cent. Manufacturing output rose by 4.6 per cent in Germany, 3.8 per cent in Italy, and 2.8 per cent in France. Among other economies, manufacturing output grew by 5.8 per cent in Austria, 5.2 per cent in Portugal and 3.8 per cent in Slovakia.

Among non-European Union economies, the manufacturing recovery in Russia remained largely on track in the third quarter of 2017 with a nearly 1.0 per cent expansion, while Norway further reduced its contraction rate.

In East Asia, manufacturing output rose by 4.7 per cent in Japan and 7.0 per cent in Malaysia. However, growth figures were lower in North America, where the manufacturing output of the United States increased by 1.2 per cent.

Developing and emerging industrial economies showed strong growth performance in the third quarter with 6.2 per cent increase in manufacturing output. China maintained the 7.3 per cent growth observed from the beginning of 2017. Viet Nam continued its double-digit growth at 12.8 per cent. Manufacturing output also rose in Indonesia by 5.5 per cent and Thailand by 4.2 per cent.

Following the resumption of growth in Latin America in the second quarter, the region achieved positive developments in the manufacturing sector, particularly as a result of improving business conditions in Argentina and Brazil. The combined growth of manufacturing output in the Latin American region was 2.5 per cent in the third quarter of 2017. Renewed growth prospects for the region are likely to have very positive impact on global manufacturing.

According to UNIDO estimates based on limited data, Africa’s manufacturing output rose by 6.4 per cent in the third quarter of 2017. South Africa, the region’s most industrialized economy, reversed the declining trend observed in previous quarters and achieved a positive growth in the thirst quarter. In North Africa, positive growth of manufacturing output was observed in Egypt, Morocco and Tunisia.

High growth of manufacturing was observed in other emerging industrial economies.  The manufacturing output rose by 4.7 per cent in Belarus, 5.8 per cent in Bulgaria, 8.5 per cent in Serbia and 10.4 per cent in Turkey.

The UNIDO report also presents the growth figures by manufacturing sectors. The global production of electronic goods rose by 8.3 per cent and motor vehicles by 5.9 per cent, indicating rising consumer confidence.

A significant shift to the production of high-technology goods was observed in developing and emerging industrial economies, which had much higher growth performances in sectors such as pharmaceutical goods, machinery and equipment, and motor vehicles.

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