World industrial output grows in third quarter - UNIDO
Amid fears of another recession due to instability in European financial markets, world manufacturing production has increased slightly in the third quarter, compared to the second quarter of 2011. Consistent growth of manufacturing output in major economies indicates that a further worldwide downturn in industrial production is not imminent, according to a report released by the United Nations Industrial Development Organization (UNIDO).
The report states that world manufacturing output rose by 5.5 per cent in the third quarter of 2011, compared to the same period of 2010. This growth is mainly attributed to developing countries, whose manufacturing output increased by 13 per cent. China's manufacturing, which accounts for almost half of that of all developing countries combined, grew by 14.5 per cent in the third quarter.
The manufacturing output of industrialized countries rose by an average of 3.3 per cent in the third quarter. U.S. manufacturing grew by 4.1 per cent. Japan's manufacturing performance improved significantly in recent months. Its output grew by 4.3 per cent in the third quarter, compared to second quarter of 2011, but it has not yet reached the level of last year.
The impact of Euro zone financial instability is so far limited to just a few countries. In Europe, strong growth of manufacturing output was observed in Austria (7.2 per cent), the Czech Republic (5.5 per cent), Germany (9.6 per cent) and in 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. The manufacturing output of the Russian Federation grew by 7.2 per cent.
Moderate growth was observed in France and the United Kingdom, however Italy's manufacturing output dropped in the third quarter, compared to the previous quarter. 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). However, the growth of leading developing economies was moderate. The manufacturing output of Argentina 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.
United Nations Industrial Development Organization (UNIDO)