Global Engineering Outlook: Modest Growth in 2024, Driven by Asia Pacific

We anticipate a 0.5% increase in global mechanical engineering output in 2024, with modest growth primarily driven by the Asia Pacific region, while North America and Europe show subdued activity. However, there are indications that the decline in activity in Europe and the US is reaching its lowest point. We forecast a robust rebound in global mechanical engineering production, with a 5.1% increase in 2025.

US Mechanical Engineering: Recovery Expected in 2025 Amid Looser Monetary Policy

Following a 2% contraction in 2023, US mechanical engineering output is expected to decrease by an additional 0.7% in 2024, due to tighter lending conditions and reduced business formation. However, a rebound of 3.7% is projected for 2025 as macroeconomic factors improve. Public infrastructure projects and anticipated monetary easing in the second half of 2024 should boost investment in machinery. In the mid to long-term, the demand for automation, digitalization, and sustainable production solutions in manufacturing is expected to support machinery demand.

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