This year the spring slowdown in manufacturing may slow down more than anticipated. Following disappointing results in the manufacturing activity and industrial production worldwide, analysts are saying that with the already weak economies in China, Germany, and the United States, the slowdown could impact more than just spring. Germany has had a trend in weaker manufacturing activity, and the U.S. has been introduced to sequestration due to its weak trend in the industry. If China, Germany and the United States can’t find a way to power their manufacturing activity this slowdown could have global effects.
Chinese imports of commodities have slowed down recently, and for the countries that export to China, this will hurt their respective market. In areas with emerging markets such as Latin America, the Middle East and Africa who thrive off of exports to the Chinese, they will have to find an alternative market to work with during these off months for exporting. Even for countries not directly involved with China have been affected as the commodity prices are declining due to speculation of Chinese demand.
German manufacturing has slipped further down for the third consecutive month to its current index level of 47.9, and it has led to the entire trade bloc staying negative at 46.5. The European Union has seen other countries slow in the past, but Germany has always remained strong and kept their numbers up. If it begins to contract as much as places like Italy, Spain, and France then it will drag the numbers down even more.
Finally, the United States has decreased its growth from 54.9 in March to 52.0 in April. Orders in most aspects of manufacturing fell, prices are falling, and the decline will just add more to the slowdown that is occurring globally. If these countries along with their partners cannot find ways to fuel the manufacturing and trade markets, the effects of the spring slowdown could linger for longer than just the spring. The global market can’t afford to take any more hits like this while it is already down, so what do you think is going to happen and how are China, U.S. and Germany going to bounce back in order to fuel the global manufacturing market?