Global Fluid Power Report and Forecast
Includes a global macro summary, by-country customer market forecast & analysis, as well as by-country fluid power industry forecasts. Countries covered in the report: US, Canada, Mexico, Brazil Poland, Netherlands, Italy, Germany, France, Belgium, UK, Russia, Taiwan, South Korea, Japan, Indonesia, India, China, Australia, UAE, and South Africa.
Oxford Economics released the following summary of updates with the latest forecast release:
- Despite some short-term stabilisation from temporary tariff reductions, we have revised our 2025 world GDP growth forecast down to 2.3%. This marks a modest improvement from April’s interim estimate following ‘Liberation Day,’ but reflects ongoing volatility in global trade dynamics. The 90-day pause in US-China tariffs has created a narrow window for firms to adapt, yet persistent threats of renewed tariffs and aggressive rhetoric — including plans for 50% US tariffs on EU imports and higher duties on metals — continue to weigh heavily on global sentiment. In Europe, initial momentum driven by tariff front-running has faded, and long-term investment remains clouded by uncertainty. Although rising defence budgets offer a degree of fiscal support, especially in the EU, this is unlikely to fully counterbalance the drag from deteriorating trade conditions and persistent policy unpredictability
- In line with our revised macroeconomic outlook, we have lowered our 2025 global industrial production growth forecast to 2.1%, a 0.5 percentage point downgrade. While recent easing of US-China tariffs brings brief relief, elevated uncertainty continues to deter capital spending — a critical driver of industrial output. US industry is expected to underperform major peers, as unclear trade policy discourages investment in key sectors like machinery, vehicles, and construction. Although future onshoring may lift some high-value segments, near-term prospects remain subdued. Europe faces similar headwinds, with the threat of severe US tariffs on EU exports amplifying the impact of stiffening Asian competition. Nonetheless, increased fiscal support — notably Germany’s March stimulus and expanding EU defence budgets — is expected to benefit sectors such as metal products, building materials, and aerospace from the latter half of the decade onward.
Global Fluid Power Report and Forecast can be accessed at this link: https://www.nfpa.com/global-forecast-oxford-economics
The snapshot below from the NFPA Stats Dashboard provides a quick look at Oxford’s Fluid Power growth forecast for the United States and a few other countries. Please contact Cecilia Bart at cbart@nfpa.com with any questions.