Global industrial production continue to accelerate
Klaveness customers and clients receive a comprehensive dry bulk research report on a weekly basis. The below is an extract from on of the topics addressed in this week’s report.
According to our model*, global industrial production continued to accelerate in February. This is positive for raw material demand and thus freight going forward.
The breakdown per region can be seen in the top graph. The size of the bubble reflects the size of the countries industrial production (IP) and thus the weight in the Global Industrial Production Proxy.
It is evident that the current recovery in industrial production is widespread. The U.S. has seen the biggest improvement YoY with a PMI of 57.7, up 8.2 points from Feb last year. China’s manufacturing PMI of 51.7, is up 3.0 points YoY. The EZ, Japan, Australia, Russia, Canada and South Africa are all growing at a strong pace. The PMI of India and Mexico indicate a slight expansion but a slower pace than last year. Brazil, Indonesia, Turkey, Malaysia, South Korea and Taiwan is in contraction mode. (Klaveness Research)
*Based on Manufacturing PMI’s from countries representing 86% of global industrial production.
We use the PMI as this often is a leading indicator on the Industrial production.