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EU, economic recovery losing pace

Economic recovery in the 27 EU Member States is continuing but at a slower pace.

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

Businesses are somehow hindered, in their expansion plans, by high energy and other input prices, supply disruptions consequence of the Japanese earthquake, fiscal retrenchment in some countries, and some continued limitations on access to finance. All these factors are adversely affecting the dynamics of the recovery. At the same time, output in the construction sector has stabilized at a relatively low level, with a recovery visible in civil engineering.

Numbers indicate that in the last three months to July 2011, manufacturing production was 4.5% higher than a year ago, but was almost unchanged compared to the first quarter  this year. Manufacturing production in recent months has been affected by supply disruptions stemming from the Japanese tsunami. Manufacturing output is now some 14% higher than its trough in early 2009 and still 8% below its peak in early 2008.

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”.

 

 

 

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