China set to overtake USA in manufacturing

The US remained, by a small margin, the world's largest manufacturer last year. But this year, as the FT has reported, that crown is set to be lost to China - well, as if we didn't see that coming.

Last year, the US created 19.9 per cent of world manufacturing output, compared with 18.6 per cent for China, with the US staying ahead despite a steep fall in factory production due to the global recession.

That the US is still top comes as a surprise, since in 2008 – before the slump of the past two years took hold – IHS predicted it would lose pole position in 2009.

However, a relatively resilient US performance kept China in second place, says IHS, which predicts that faster growth in China will deny the US the top spot next year.

Read the Financial Times article