The current forecasts for 2012 show overall activity in the European Union steel using industries growing by over four percent on year-on-year basis, due to convergent sectoral dynamics, according to the Economic and Steel Market Outlook 2011-2012/Q3 2011 Report from the Economic Committee of the European Confederation of Iron and Steel Industries (EUROFER).
The year-on-year rise in the industrial activities of the European Union steel using sectors was better than expectations in Q1 2011. All sectors except shipbuilding posted higher than expected growth in output. Overall output rose 12 percent year on year in the first quarter of 2011, reflecting that particularly the manufacturing sector is in an excellent shape owing to the much improved order book situation.
Following the last month of 2010 which was heavily influenced by the severe winter conditions, the much milder weather in the first quarter was supportive of growth. Activity in the manufacturing sector is also supported by the lively export demand for intermediate goods as well as the remarked rebound in domestic investment in machinery and equipment.
This trend is expected to be sustained over the coming quarters. Most steel using sectors in the EU are expected to show a growth of around four percent in the second half of this year, resulting in a six percent output growth in the whole of 2011.