Industrial production around the world plunged after the onset of the Great Recession and in most advance nations has yet to fully recovery. The U.S. is an exception. Overall industrial production, which includes the output of the nation’s mines, factories and power plants has more than recovered, though largely because of increased oil and gas production. Overall manufacturing output remains a bit below pre-recession levels.
Last week, the federal government reported that industrial production rose 0.2 percent in June on a monthly basis and is up 4.3 percent from a year earlier. According to writer Floyd Norris, that represents a faster rate than in any other major advanced economy. For the most part, it is the developing world where one observes industrial production growth.
The government of the Netherlands compiles industrial production reports from 27 advanced economies and 54 developing economies around the world and computes international averages. These computations indicate that on average in advanced economies, industrial production is still nearly 5 percent below where it had been at the end of 2007. It’s up by more than 60 percent in developing economies led not surprisingly by growth in China.