Global manufacturing conditions have improved by there is plenty of reason to remain cautious, a new report from the Manufacturers Alliance for Productivity and Innovation (MAPI) says.
MAPI’s Global Outlook, July 2013, released last week, claims that central banks have worked aggressively to combat economic slowdowns since the 2008-2009 global financial crisis. Citing activity from the European Central Bank, the U.S. Federal Reserve, and the Bank of Japan, the MAPI report notes that the hardest-hit areas were provided with adequate liquidity to escape financial problems.
MAPI Senior Economist Cliff Waldman notes that the retreat from the brink has not improved conditions to positive levels.
“Unfortunately, the calmer world economy is not yet a stronger one, and this is not to say that destabilizing risks are absent from the global landscape,” he said. “In an increasingly interconnected world economy, everything from a banking crisis in Cyprus to various disasters in Syria and Turkey can have wide impacts. But over the near term, shocks are more likely to be exogenous than financially or economically endemic.”
Indeed, Waldman goes on to show that those worried about the Federal Reserve reducing its purchases of bonds and the continued recession in Europe are still causing instability in economic circles. For the whole report, click here.