The remarkable resilience of manufacturing

While reading in the paper this morning (yes I still get one delivered) about Chinese factories pressing their workers to remain onsite to continue working during the Chinese New Year holiday which begins next week, I cannot help thinking how resilient manufacturing has been throughout the crisis - despite large scale lock downs. The interactive below shows the extent to which manufacturing has performed over the last 12 months through to January 2021. Many economies are looking back on 8 or 9 months of uninterrupted expansion. First and foremost this includes China, but oddly also includes South Africa - both of which have seen manufacturing activity expand for most of the last year. A similar trend applies to Brazil, Turkey and the UK, which according to the IHS Markit monthly PMI index have been expanding for nine months. Even the US and the Eurozone have been growing for the last seven months. <a href="http://style.embed-container%20position:%20relative;%20padding-bottom:%2080%;%20height:%200;%20max-width:%20100%;%20.embed-container%20iframe,%20.embed-container%20object,%20.embed-container%20iframeposition:%20absolute;%20top:%200;%20left:%200;%20width:%20100%;%20height:%20100%;%20smallposition:%20absolute;%20z-index:%2040;%20bottom:%200;%20margin-bottom:%20-15px;/stylediv%20class=embed-containeriframe%20width=500%20height=400%20frameborder=0%20scrolling=no%20marginheight=0%20marginwidth=0%20title=Manufacturing%20PMI%20-%20As%20at%205%20Feb%202021%20src=//www.arcgis.com/apps/Embed/index.html?webmap=68418c0e63e64eeab8a9ade36d3fbb38&extent=-180,-75.8433,180,82.6323&zoom=true&previewImage=false&scale=true&legendlayers=true&disable_scroll=true&theme=light/iframe/div"> .embed-container {position: relative; padding-bottom: 80%; height: 0; max-width: 100%;} .embed-container iframe, .embed-container object, .embed-container iframe{position: absolute; top: 0; left: 0; width: 100%; height: 100%;} small{position: absolute; z-index: 40; bottom: 0; margin-bottom: -15px;} However, these numbers hide the fact that for the most part, the world economy did not do well. Because of the pandemic, many economies worldwide are expected to be smaller in 2021 than they were in 2019. Following growth of 2.3% in 2019, recent January 2021 Worldbank forecasts expect a decline of 4.3% in 2020, followed by growth of 4% and 3.8% in 2021 and 2022, respectively. This means the world economy will 0.5% smaller at the end of 2021 compared to 2019 and 3.3% larger by the end of 2021. The regional differences are expected to be large – the Euro Area is not expected to recover from 2020 declines until 2023, more than a year after the United States. The only large economy that grew in 2020 is China. So why are manufacturing numbers so out of whack with the rest of the economy? Firstly, manufacturing was not subject to the kind of lockdowns that affected the service sector. Secondly, big Government stimulus packages helped to buoy spending. In some large economies - like the US - consumer spending in 2020 was on par with 2019, but not all sectors performed equally with fixed retail bleeding while online retail was having a ball. Other than that, the resilience of manufacturing has been truly remarkable.

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The remarkable resilience of manufacturing

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The remarkable resilience of manufacturing

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Volumes up and yields down – the air express business in 2020 was a lot like 2019

US air trade ends 2020 on a high

Related Posts

Air express shipment growth moderates after several strong years

Stored freighters dwindling as demand stays high

Cross border e-commerce growth loses steam in key markets

Air Canada Cargo 2021 revenues reach all-time high

US air trade ends 2020 on a high

Privacy Terms

ADA Compliance

Welcome Back!

Retrieve your password