In 1870 Britain, with 32 per cent of the world’s manufacturing capacity, was the largest industrial power in the world. By 1910 it had been overtaken by the United States, which had 35.3 per cent of the world’s manufacturing capacity, and Germany with 15.9 per cent: Britain now had 14.7 per cent. But Britain was still the dominant power in the world’s banking, insurance and shipping markets. Its invisible exports therefore compensated for its relative decline in the manufacturing sector.
