Manufacturing: EU recession takes a break, China behind target

The year-over-year changes in industrial production outputs for August are now available.

Among the key regions targeted for advanced automation equipment, only the European Union has demonstrated significant improvement compared to July, emerging from recession for the first time since December 2023. In contrast, China’s industrial output has declined for the fourth consecutive month, falling short of the government’s target of 5% growth. Meanwhile, the United States has yet to see a rebound in growing production activity.

Among other monitored countries, India experienced a sudden halt in its growth trajectory in August. However, we anticipate a return to significant growth, likely by the end of this year. Unfortunately, Mexico’s year-over-year change has also slipped into recession territory, although Germany’s decline has at least shown signs of slowing.

On the Manufacturing PMI front, readings have improved across all top four countries, with Spain significantly outpacing other major EU economies. Vietnam’s Manufacturing PMI has rebounded from its notable dip in September, indicating a return to growth. Both the US and Mexico have seen improvements in their PMI readings, yet they remain in recession territory. Even Germany has interrupted its downward trend from the past five months, but it, along with Austria, remains at the lower end of the spectrum among major economies. Click here to explore in-depth insights on the latest global industrial trends.

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