Market environment marked by uncertainty in H1 2026
Global economic development in the first six months of 2026 was characterized by heightened geopolitical and trade policy uncertainty. Strains relating to energy and supply chains, together with a generally subdued economic environment, affected the end markets relevant to NORMA Group. While the US economy remained robust, with a GDP growth of 2.1%, economic growth in the euro area remained subdued at 0.2%. In China, gross domestic product grew 4.7% in the first six months, although demand weakened due to declining foreign trade and persistent structural challenges.
Market environment for Industry Applications
Demand in the end markets relevant to the Industry Applications strategic business unit varied by region. Investment in digitalization, data centers, and energy infrastructure supported demand in selected industrial applications. By contrast, investment appetite in traditional industries remained subdued amid geopolitical uncertainty and weak industrial activity. Global industrial production grew 2.1% in the first five months of 2026, at a slower pace than in the prior year. Construction activity also varied by region. While infrastructure projects and investment in energy and data center applications provided growth momentum, residential construction remained weak, particularly in China and parts of North America. By the end of June, for example, residential construction in China contracted 17.8%, while US single-family home construction declined 5.7% through the end of June.
Market environment for Mobility & New Energy
Global automotive production declined in the first half of 2026. In the first five months of 2026, global light vehicle sales fell 5.6% compared with the prior-year period, while production declined 2.2%. Trade policy uncertainty, material shortages, and the impact of the Middle East conflict on global supply chains were particular headwinds. At the same time, the structural shift toward electrified powertrains continued. Overall, the market environment for the global automotive industry and its suppliers remained challenging.
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These contents are part of the Non-financial Group Report and were subject to a separate limited assurance examination.