Global Production Declines for the First Time This Year: The Impact of Artificial Intelligence

In April 2025, global industrial activity recorded its first decline since the beginning of the year. According to data, the JPMorgan Global Manufacturing Index fell to 49.8 points compared to 50.3 in March, indicating a contraction in the sector, as any reading below 50 signals a decrease in business activity.

This is reported by AgroReview

Declining Orders and Employment Pressure the Sector

Experts link the deterioration in the manufacturing sector to a decrease in new orders and a reduction in employment. Of particular concern is the decline in the index of future production volumes, which has reached its lowest level since October 2022. Over the last period, it lost 4.5 points, which some economists attribute to political changes, particularly the return of Donald Trump to the White House.

Additionally, export orders fell to their lowest level since spring 2022, losing 2.8 points and settling at 47.2. This is the weakest reading since August 2023, indicating a worsening of negative trends in international trade.

Product Prices Rise, Economic Prospects in Artificial Intelligence

Despite these challenges, the index of finished goods prices reached its highest level since March 2023, although purchasing prices remained stable. This may indicate an increase in consumer costs while maintaining relative stability in producers’ resource expenses.

“A study by PricewaterhouseCoopers shows that the implementation of artificial intelligence could accelerate global economic growth by 15 percentage points by 2035. This would allow an additional one percentage point to be added to the annual growth rate of global GDP. At the same time, if the level of trust in artificial intelligence remains low and interaction between companies is insufficient, additional growth may be limited to just 8 percent, and under pessimistic forecasts, may not exceed 1 percent.”