Brussels, 20/09/2011 (Agence Europe) - Recovery of European industry continues but at a slower pace during the second quarter 2011, the European Commission announced on Monday 19 September. Although 4.5% up on the second quarter 2010, manufacturing production in the EU has almost not progressed compared to the first quarter this year, the Commission underlines in a press release. Manufacturing output is now some 14% higher than its trough in early 2009 and still 8% below its peak in early 2008. Recent falls in business confidence indicate a slower growth rate in the second half of the year, the Commission explains, stating that high energy and other input prices, supply disruptions from the Japanese earthquake, fiscal retrenchment in some countries, and some continued limitations on access to finance are adversely affecting the dynamics of recovery.
Overall, manufacturing production recovery has slowed down during the second half of 2011. While activity in the construction sector has stabilised at a relatively low level, with recovery in civil engineering, the strong production increases have been in information technology and electronics, and the engineering and mechanical engineering sectors. On the other hand, contraction is mainly noted for intermediary goods, the tobacco, textile and clothing sectors, and the manufacture of other non-metal mineral products. The situation on the labour market has remained relatively stable. Nonetheless, since the peak of the 2008, jobs in the industrial sector are down by nearly 11%.
Finally, although recovery can be seen in all member states except for Cyprus and Greece, EU manufacturing production remains clearly below its level before the crisis in Poland, Slovakia, Belgium, Ireland and Estonia. (EH/transl.jl)