EU INDUSTRY: ECONOMIC RECOVERY CONTINUES AT A SLOWER PACE

In the three months to July 2011, manufacturing production in the European Union was 4.5 per cent higher than a year ago, but was almost unchanged compared to the first quarter, the European Commission said on September 19 2011.

Manufacturing production in recent months has been affected by supply disruptions stemming from the Japanese tsunami.

Manufacturing output is now about 14 per cent higher than its trough in early 2009 and still eight per cent below its peak in early 2008.

Recent falls in business confidence indicate a slower growth rate in the second half of the year, but industrial confidence is still above its long-term average, the Commission said.

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 the recovery.

Output in the construction sector has stabilised at a relatively low level, with a recovery visible in civil engineering.

European Commission Vice President Antonio Tajani, responsible for Industry and Entrepreneurship, said: "Our industry is in a better shape than before the crisis. This is underlined by the good performance of the German and French industry in July.

"However the slowdown of the recovery should push us to continue promoting growth and competitiveness, also through structural reforms aimed at freeing industry and SME's potential," Tajani said.

Separately, EU statistics office Eurostat said on September 19 that in the construction sector, seasonally adjusted production rose by 1.4 per cent in the 17-member euro zone and by 0.3 per cent in the EU27 in July 2011, compared with the previous month.

In June, production decreased by 1.3 per cent in the euro area and by 1.1 per cent in the EU27.

Compared with July 2010, output in July 2011 increased by 1.2 per cent in the euro area and by 0.2 per cent in the EU27.

In terms of monthly comparison, among the member states for which data are available for July 2011, construction output rose in Slovenia (10.3 per cent), Romania (3.3 per cent), Germany (3.2 per cent) and Poland (1.2 per cent), and fell in the other eight member states.

The largest decreases were registered in the United Kingdom (-4.3 per cent), Sweden (-3.1 per cent),Portugal (-2.8 per cent) and the Czech Republic (-1.6 per cent).

Building construction increased by 0.6 per cent in the euro area, but decreased by 0.2 per cent in the EU27, after -0.6 per cent and ‑1 per cent, respectively in June.

Civil engineering rose by 4.1 per cent in the euro area and by two per cent in the EU27, after ‑3.2 per cent and -2 per cent respectively in the previous month.

In terms of annual comparison, among the member states for which data are available for July 2011, construction output rose in Poland (17.4 per cent), Romania (14.4 per cent), Spain (12.5 per cent) and Germany (5.4 per cent), and fell in the other nine member states.

The largest decreases were registered in Slovenia (-26.6 per cent), Bulgaria (-13.3 per cent), Portugal (-10.7 per cent) and Sweden (-10.2 per cent).