Many parts of the world have a booming economy. One way that economic growth is measured is by factory output. One indicator of factory output is the Purchasing Managers’ Index. According to this measurement, factory output looks good for the coming year, but not in all places.
The Euro Zone countries are showing good factory output. In fact, the entire Euro Zone is seeing the best factory output numbers since the 1990s.
Within the Euro Zone, some countries are doing better than others. Germany and Italy are seeing almost record numbers in factory growth. Both France and Spain have seen production increases that are well above expectations.
Not all is well in the European Union. The United Kingdom is not fairing as well as the other nations. Its rate of factory output growth is expected to be at least one percent below the Euro Zone nations. The entire British economy is expected to grow at a reduced rate in 2018 compared to growth in both 2016 and 2017. This may be due in part to the Brexit situation.
In Asia, factory output is going well, and it is expected to remain strong in both Taiwan and Japan. China is doing better than expected even though it is placing more controls on factories in regard to pollution and environmental controls.
The global economy does have one worry going into 2018. Uncertainty remains on the course that the Unites States will take in regard to protectionism. The imposition of tariffs may slow the economy if trade wars develop.