Positive trend in manufacturing continues, although at moderating pace

UNIDO

The most recent data on manufacturing for the second quarter of 2022 show that the impact of the COVID-19 crisis kept weakening on a global level. Nevertheless, the pandemic still exerts a significant influence on global manufacturing production, although with strong regional and sectoral differences. The ongoing conflict in Ukraine remains an important source of global uncertainty for the forthcoming months, given its effects on the supply of raw materials, foodstuff and energy. This compounded ongoing global supply chains problems, leading to rising prices in commodities and generalized inflation across the world.

The latest UNIDO World Manufacturing Report, published by the United Nations Industrial Development Organization (UNIDO), includes the most recent official data on global manufacturing production, covering the second quarter of 2022. After the slump in manufacturing in 2020 caused by the COVID-19 pandemic and the recovery in 2021, world manufacturing production continued growing at a stable pace with a year-over-year growth rate of 3.1 per cent in the second quarter of 2022.

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The report also indicates that production seems to be decelerating in the second quarter of 2022. However, it also reveals different growth patterns across regions and sectors. Manufacturing output in industrial economies continued to grow at a slower pace of 2.6 per cent, which is the lowest result since the fourth quarter of 2022. On the other hand, other industrializing economies registered a sharp year-over-year increase of 10.4 per cent.

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The report also shows how industrial sectors are growing at different speeds. In the second quarter of 2022, all sectors continued to expand, but at a slower pace. Medium-high- and high-technology industries outperformed other industries, with a year-over-year growth rate of 3.7 per cent. Industries classified as low-technology industries registered an increase of 2.4 per cent, while medium-low technologies recorded a minimal growth of 0.8 per cent.

Performance of medium-high- and high-technology is attributable to the strong production of the computers, electrical equipment and motor vehicles industries; the latter now reached a positive growth rate after a year of decline. On the other hand, the manufacture of pharmaceuticals registered a decline in production for the first time since 2013.

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