Moody's revised the outlook for the global manufacturing industry to stable from negative over the expectations of a strong economic recovery from the coronavirus crisis in 2021.

The outlook revision reflects an EBITDA growth forecast of 8% in 2021 following double-digit declines in 2020, according to Moody's Senior Vice President David Berge.

"While there are still many risks and uncertainties about how the pandemic will ultimately resolve, the sector appears to have overcome the worst of the coronavirus-induced recession and is on a path to recovery, assuming no recurrence of a second wave of infections and renewed lockdowns," Berge said.

Moody's said the global manufacturing operating environment should gradually improve amid a rebounding economy and improving market sentiment.

The rating agency warned that some manufacturing segments remain vulnerable to risks and uncertainties surrounding the economic recovery, including aerospace, defense and auto suppliers, which are grappling with the weak recovery in flight volumes and larger declines in light vehicle sales due to the recession caused by the pandemic.

Meanwhile, building equipment suppliers and industrial automation components and systems providers are expected to see a strong and sustainable recovery in demand following the pandemic, according to Moody's.