China maintained growth in machinery production in 2009 even as most companies showed steep declines, according to a new report from IMS Research.
The report predicted China's growth rate will pick up again in 2010, but will not reach the more-than-20% rates seen prior to the recession. Growth continues to be driven by growing domestic demand in China, with higher levels of disposable income and large government investment.
The report said that, of the major industrial nations, the United States is expected to be among the strongest performing in terms of growth in 2010. The U.S. was one of the first into the downturn, and subsequently one of the earlier nations to return to growth. The report points to the recovery in the automobile industry, which benefited from large government stimulus packages, to helping drive 2010 growth in machinery production revenues.
The industry in Germany, the leading European producer of machinery, suffered badly as exports declined in the economic downturn. The recovery started later in Europe than in the U.S., the report states, and is being slowed by concerns in some countries over sovereign debt.
Japan’s machinery production, as in Germany, relies exports and suffered in 2009. Growth in 2010 is predicted, the report said, but will be limited.
to Daily News