European engineering industries outlook for 2012-3: modest expectations which depend on EU’s economic policies
29 November 2012
Orgalime economists estimate that the engineering industry’s value of production in EU27 reached some €1666 billion in 2011. All major sub-sectors in the industry showed robust growth in 2011. The highest growth in output - 11.5% - was registered in the mechanical engineering sector. Output in the metal products and metalworking sector grew by an estimated 6.8% and, for electrical engineering and electronics including instruments and ICT, the growth in output reached 5.5%. Overall, the output of the industry increased by an estimated 5.9%, an important development given that the 2010 growth was already at 7.5%. However, this is not expected to continue in 2012.
Commented Orgalime President Richard Dick: “Unresolved public and private financial imbalances within the EMU and the subsequent decline in business confidence are now leading to low demand for engineering products in the EU. After a successful 2011, our industry in the EU is today witnessing an unfortunate stagnation in production, which is forecast to continue in 2013. While credible fiscal consolidation as well as structural reforms are of the utmost importance for long-term prospects, short-term economic policies are required to support the recovery of European industry and restore confidence to European businesses and consumers”.