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Written by Mike Buetow
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Tuesday, 30 June 2009 09:10 |
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LOS ALTOS, CA – The dismal picture for global equipment production should brighten considerably in 2010, according to a new research report.
Worldwide equipment production is predicted to expand 5.4% in 2010 and 8.4% in 2011, says research firm Henderson Ventures. The rebound is a dramatic improvement over the 12.3% decline Henderson forecasts for this year. While each region is forecast to see a drop in 2009, China will take the smallest hit, at 6.6%. Japan’s output is forecast to drop 21.3%, slammed by investment retrenchments and plant closings. The US is forecast to drop 10.1% this year, then rebound to 3.3% growth in 2010.
The other "good" news: The first-quarter economic results are likely the "trough," Henderson says, pointing to the financial rescue packages which are "starting to have the desired impact." "Massive liquidity injections have largely stabilized the global financial structure and created record-low interest rates. Credit has become more readily available, which will help to revive global trade, as well as consumer spending and corporate investment. Greater liquidity will also help to put a brake on aggressive inventory divestment, which has greatly aggravated the economic downturn," Henderson said.
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Last Updated on Tuesday, 30 June 2009 09:35 |
