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), in the first quarter of 2011 output in the EU mechanical engineering industry grew almost 14 percent compared to the same quarter of 2010.
Robust export demand for equipment and machinery along with strengthening domestic demand for capital goods have been the driving factors for the improvement in the mechanical engineering industry in the EU.
The German mechanical engineering association VDMA posted a 22 percent increase in orders in April compared to April of 2010. Order books have been filling up steadily and domestic orders have been rising as rapidly as export orders in recent months.
In the remainder of the year, a mild moderation in output growth is to be expected. In 2011, mechanical engineering output in the EU is forecast to increase by almost 9.5 percent, while a further moderation in output growth to on average 5.5 percent seems likely for next year. This should also trigger new investment in the sector itself.