European Industrial Outlook: Deepening Regional Disparities - Modern Distribution Management

Log In

European Industrial Outlook: Deepening Regional Disparities

MAPI's European Industrial Outlook forecasts accelerating growth for most industries.
Author
Date

Most industrial sectors in the Eurozone have emerged from recession, but the continent is experiencing deepening regional disparities in economic performance, according to the Manufacturers Alliance for Productivity and Innovation’s European Industrial Outlook, a report covering 14 major industries and 13 major economies.

The report separately analyzes the distinct regions of Western Europe and Central Europe. The former generally comprises the 18 countries of the currency union (eurozone), while the latter constitutes the three largest economies of Central and Eastern Europe (CEE3): the Czech Republic, Hungary and Poland.

Italy, Finland and the Netherlands languish in effective recessions while Poland, Germany and the United Kingdom power ahead amid improving fiscal balances and rising consumer confidence.

MAPI senior economist and report author Kris Bledowski forecasts GDP in the Eurozone to advance 1.1 percent in 2014 and 1.4 percent in 2015. Within the CEE3, he envisions GDP growth of 2.4 percent in 2014 and 2.9 percent in 2015.

“Domestic demand remains feeble. Signs accumulate that fixed investment is slowly perking up but inventory swings pull down the overall pace of capital formation,” Bledowski said. “On the other hand, manufacturing production rose in each of the past five months and is running just over 3 percent over the level of a year ago in the European Union and just under 3 percent in the eurozone.”

Manufacturing production is expected to grow by 2 percent in the eurozone this year and 2.6 percent in 2015, while the CEE3 is forecast to increase 5.5 percent in 2014 and 5.4 percent in 2015.

Bledowski reports that 11 of 14 industries the report monitors are in the accelerating growth (recovery) phase of the business cycle in the eurozone. Three – petroleum, computers and electronics, and electrical machinery – are in the decelerating decline (late recession or very mild recession) phase.

In Central Europe, 12 industries are in accelerating growth, one (fabricated metals) is in decelerating growth and one (petroleum and coke) is in decelerating decline.

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.