Global manufacturing output is continuing to grow in the
wake of the GFC, according to the UN Industrial Development Organization
According to a UNIDO report, world manufacturing output grew by 5.1
per cent in the first quarter of 2014, the highest growth seen for several
About two-thirds of the growth took place in industrialised
nations. This equated to a 3.3 per cent growth in those countries.
Manufacturing output also grew by 9.4 per cent in developing
and emerging industrial economies in the first quarter of 2014. This included
China with a growth rate 13.1 per cent.
However, excluding China, the remaining emerging industrial
economies grew by only 1.4 per cent. Manufacturing output actually fell in many
of these nations. For example, in India it decreased by 1.6 per cent.
According to the report, recovery in these developing economies is
being affected by increasing production costs and the reversal of capital flows.
JPMorgan’s recently-released Global Manufacturing Purchasing
Managers’ Index (PMI) for May is further evidence of manufacturing’s recovery.
According to Reuters, the Global PMI for May was 52.2. This
represented an increase since April’s figure of 51.9. It was the 18th
consecutive month of increase for the Global PMI.
Readings above 50 correspond to expansion, while figures
under 50 indicate contraction in activity.
“The growth rate of global manufacturing production
ticked higher in May, as companies raised output in response to rising levels
of new business and international trade volumes,” David Hensley, a
director at JPMorgan told Reuters.