Activity in EU electrical domestic appliances industry to rise mildly in 2010

In the first quarter of 2010, activity in the electrical domestic appliances industry in the European Union grew 1.1 percent compared with the weak level of output registered in the same period of 2009, according to the third quarter report of the ‘Economic and Steel Market Outlook 2010-2011', released by the European Confederation of Iron and Steel Industries (EUROFER).
 
EUROFER assessed that, although private consumption will be rather depressed this year due to the uncertainties stemming from the general economic situation and more recently the negative direct and indirect effects of austerity programs announced by most EU governments on household wealth, demand for electrical domestic appliances appears to have troughed in the final quarter of last year.
 
The relative strength of renovation and modernization activities currently seen in the construction sector confirms that consumers are shying away from buying new property and are deciding to renovate or modernize existing homes instead. This is certainly providing a welcome impulse to demand for electrical domestic appliances, EUROFER said.
 
According to the report, first data and estimates for the second quarter of 2010 signal a continuation of the mildly upward trend in the activity of the EU electrical domestic appliances industry. This trend is likely to continue in the remainder of 2010. On balance, output in the electrical domestic appliances sector is forecast to rise approximately two percent this year.
 
EUROFER's prospects for 2011 are slightly more positive. A modest improvement in private consumption and activity in the residential construction sector picking up from the low levels reached in previous years will support the view of sales of new and existing homes developing more momentum over the year. Also the EU energy labeling scheme for electrical appliances will continue to stimulate replacement demand. Thus, EUROFER expects output of electrical domestic appliances to rise by almost four percent in 2011.