In June 2024, the Russian engineering industry experienced growth for the sixteenth month in a row. Total production in the five engineering industries was 9.8% higher than in June 2023. Such data are provided in the published analytical bulletin of AK&M "Branches of the Russian economy: production, finance, securities" No. 1585 Mechanical engineering.
At the same time, compared with May, production growth rates remained at the previously achieved level. In general, according to Rosstat, in the first half of 2024, the total turnover of enterprises in all sectors of mechanical engineering increased significantly by 42.8% compared to the same period in 2023. The production of motor vehicles increased at the highest rate. The Ministry of Industry and Trade of Russia predicts an increase in industrial production by the end of 2024 at the level of 4%.
The growth of production in Russia is taking place against the background of the crisis of European industry. Serious problems continue in the manufacturing industries of Western countries due to a decrease in new orders, export orders and employment levels. The key economies of the European Union, such as France and Germany, show some of the lowest values of the PMI index (Purchasing Managers Index, an index of business activity calculated on the basis of a survey of managers): in Germany in August, this indicator was 43.2 points, in France – 44 points. According to data published by Bild with reference to the Creditreform Association of Economic Researchers, the number of bankruptcies in Germany increased by 30% in the first six months of 2024. During this period, 11 thousand companies went through bankruptcy, which is the highest level in the last 10 years.
In turn, in China, the index of business activity in the manufacturing sector remains at the same level – in August the indicator amounted to 49.4 points, unchanged from July and remaining below the critical mark, which indicates pessimistic sentiments about the Chinese manufacturing sector.
The most serious changes are taking place in the automotive industry. According to preliminary data, the global production of passenger cars in June 2024 decreased by 45% compared to June 2023, amounting to 4.15 million units. Compared to April 2024, production decreased by 42.7%. Among global manufacturers, only Chinese concerns showed a slight increase. In China, May car production increased by 1.7% compared to May 2023, reaching 2.37 million vehicles. However, compared to April 2024, production decreased by 1.4%.
The Russian automotive industry continues to actively recover after the deep recession of 2022. In June 2024, the automotive industry saw an increase in production for the fifteenth month in a row. At the same time, since June last year, the production index has been steadily decreasing as the base effect is smoothed out, but remains at a fairly high level – 121.7%.
For more information about the situation in the machine–building industry, see the bulletin "Branches of the Russian economy: production, finance, securities" No. 1585 Mechanical Engineering.
