Mixed results in the global manufacturing industry at the end of 2024

The annual production data (see Figures 2 and 3) show mixed results. The US is recovering slightly but remains negative, while the EU is slowing its decline. Japan is returning to positive territory, and Korea is showing significant growth after previous difficulties. China remains robust above 5 percent growth. India continues to show strong growth, while Mexico is experiencing deeper contractions. Germany tightens its contraction slightly, while Spain continues its recovery and Italy shows some stabilization.

Structural challenges in developed markets such as the EU and Japan remain a key concern, although Japan has returned to positive growth and the decline in the EU has become more moderate. The impact of Trump 2.0 on the US manufacturing industry is still uncertain.

In Asia, South Korea sees a steep decline of 1.6 points and falls into contraction territory. Japan recovers slightly to 49.6, while Taiwan shows the strongest rebound in the region with an increase of 1.2 points. China plans to issue Chinese ID cards to Taiwanese citizens, which could affect the economic situation on the island. Vietnam slips into contraction, signaling challenges after months of stability.

In Europe, Spain continues to exceed expectations with a slight improvement. Germany and Austria show modest improvements but remain deep in contraction territory. France struggles with increasing economic challenges and political unrest. Italy shows less pessimistic sentiment with a notable improvement of 1.7 points.