Global manufacturing in sluggish growth third quarter 2012 – UNIDO
World manufacturing growth has remained sluggish in the third quarter of 2012, with output rising by just 2.2% compared to the same quarter in the previous year, the lowest rate since 2009, the United Nations Industrial Development Organization (UNIDO) said in a new report December 3, 2012.
The report gives quarterly production estimates of the current status and growth trends of world manufacturing output by country groups and by manufacturing sector.
The report said the new setbacks have dimmed the prospects of a global manufacturing recovery.
While trends for the first half of 2012 were a mixture of dynamic growth in North America, East Asia and developing countries, and uncertainty in Europe, the latest UNIDO production data indicated a stronger recession in Europe and a weakened recovery in North America and East Asia, as well as a sustained slowdown in developing countries.
According to the report, industrialized countries have experienced a decrease in industrial production (negative growth) for the first time since 2009.
Estimates from the UN agency show that during the third quarter of 2012 manufacturing output dropped in all major euro-zone economies compared to the same quarter in the previous year, with Germany experiencing a fall of 1.7%, Italy 6.2%, France 1.9% and the United Kingdom 0.9%. Among the few countries registering positive growth were Austria, Malta and Slovakia.
The report highlighted that manufacturing output in Japan also decreased by 4.6% while the US’ manufacturing output grew by 4.1% and 0.3% in Russia.
UNIDO observed that manufacturing output of developing countries grew by 6.6% in the third quarter of 2012, compared to the same quarter in the previous year, but fell by 2.3% compared to the second quarter.
“Manufacturing output in China grew year-on-year by 9.2%, in Mexico by 4.1% and in Turkey by 3.3%. India achieved a nominal growth of 0.2 per cent but manufacturing output fell in Latin American countries,” it added.
Manufacturing in African countries, which depend heavily on the export of primary processed commodities to Europe, has also slowed down, noted UNIDO. Based on limited data, it estimated that the manufacturing output of African countries as a group rose by just 2.6% with South Africa showing a rise of 2.9% as Egypt’s output fell by 5.9%.
By Ekow Quandzie