European Engineering Industries: high growth in 2010 & 2011, slowdown in growth expected in 2012

Orgalime economists estimate that 2011 will become another successful year for the European engineering industry. Overall, output of Orgalime industries is expected to grow by 8.5 percent in volume, only slightly below double digit growth rates.


The industry has also been investing and taking on new employment at a rather rapid pace for the past two years and this has improved international competitiveness and raised productivity.
The strong and relatively quick recovery of European engineering has mainly been a result of exports outside Europe. Demand has been very high in Asia, Latin America and other emerging markets. Due to rather sluggish demand in Europe, the contribution of trade inside the EU has been very modest for more than a year.


However, the lack of public fiscal discipline within the euro area has recently led to a loss of confidence in the private sector, which is reflected in a deterioration of several business indicators such as the European Commission’s DG ECFIN monthly sentiment indicators and the recent developments in global stock markets. The engineering industry’s economic outlook for 2012 is therefore less optimistic and the industry is expected to grow by a modest 3.3 percent in volume, with a forecast slowdown in the growth of exports, investment and employment.

Published
6 October, 2011
Category
Press release
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