Output rose by just 2.2 per cent compared to the same quarter in the previous year, the lowest rate recorded since 2009.
This was occasioned by new setbacks which dimmed the prospects of a global manufacturing recovery.
The report stated that whereas trends for the first half of 2012 showed a mixture of dynamic growth in North America, East Asia and developing countries and uncertainty in Europe, the latest production data indicated a stronger recession in Europe and a weakened recovery in North America and East Asia, as well as sustained slowdown in developing countries.
It said industrialized countries, as a group, have experienced a decrease in industrial production (negative growth) for the first time since 2009.
UNIDO estimates show that during the third quarter of 2012, manufacturing output dropped in all major euro-zone economies compared to the same quarter in the previous year, with Germany experiencing a fall of 1.7 per cent, Italy 6.2 per cent, France 1.9 per cent and the United Kingdom 0.9 per cent.
It pointed out that the few countries- Austria, Malta and Slovakia, registered positive growth.
â€śManufacturing output in Japan decreased by 4.6 per cent but on the positive side in the United States, manufacturing output grew by 4.1 per cent and, in the Russian Federation, it grew by 0.3 per cent,â€ť the report stated.
It said relative to industrialized countries, the rate of industrial growth of developing countries remained high, however the impact of global contraction is clear.
â€śIndia achieved a nominal growth of 0.2 per cent but manufacturing output fell in Latin American countries. Manufacturing in African countries, which depends heavily on the export of primary processed commodities to Europe, has also slowed down.
Based on limited data, UNIDO estimates that the manufacturing output of African countries as a group rose by just 2.6 per cent. South Africa showed a rise of 2.9 per cent, but Egyptâ€™s output fell by 5.9 per cent,â€ť the reported stated.
The report noted that the manufacturing output of developing countries grew by 6.6 per cent in the third quarter of 2012, compared to the same quarter in the previous year, but fell by 2.3 per cent compared to the second quarter.
It said manufacturing output in China grew year-on-year by 9.2 per cent, 4.1 per cent in Mexico and in 3.3 per cent in Turkey.
UNIDO maintains an international industrial statistical database in accordance with the mandate of the United Nations Statistics Commission.
A business desk report