European industrial outlook

01/2/2013

Krzysztof Bledowski, Ph.D., senior economist
The Eurozone is back in recession. This second downturn is wide-ranging and we see little support of aggregate demand. Regional differences in manufacturing performance persist, and total industrial output fell 2.3% in the third quarter in the Eurozone and 2.7% in the EU27. In the Eurozone, intermediate goods and consumer durables bore the brunt of output attrition in the third quarter. Somewhat surprisingly, production of capital goods has softened only slightly over the past year, buoyed by external demand from Asia and the Middle East. Economic Outlook

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