In the first quarter of 2023, the mechanical engineering sector displayed remarkable tenacity, with output continuing to surge (+6X). This marked the ninth consecutive quarterly increase, a testament to the post-COVID industrial recovery. The rebound has propelled output to unprecedented levels, surpassing even the heights recorded before 2019, reveals EUROFER’s latest reportYet, the sector treads on uncertain terrain, vulnerable to lingering downside risks. Russia's invasion of Ukraine and the rapid deterioration of the economic and industrial outlook in early 2023 cast shadows over its growth prospects. While the current challenges have not fully impacted mechanical engineering's output, its growth is projected to wane in the second quarter of 2023 and the fourth quarter. However, there is optimism for a return to positive territory in the first half of 2024.Following a significant downturn (-11.8%) in 2020 due to the pandemic, mechanical engineering experienced a sturdy resurgence (+13.4%) in 2021. The strong recovery in EU industrial sectors, especially in the first half of the year, fueled this growth. Despite the war-related disruptions and an energy shock, the sector demonstrated robust expansion in 2022 (+7.9%).Nevertheless, the forecast for 2023 anticipates only a slight increase (+1%, revised upwards from +0.5%) due to the lingering weakness in the overall manufacturing sector and economic uncertainties driven by inflation. Barring unforeseen circumstances, the second half of 2023 could witness overall improvements in the economy and industry, paving the way for slightly higher output growth in 2024 (+12%).In the face of turbulence, the mechanical engineering sector stands as a testament to resilience, forging ahead despite the odds. As the industrial landscape evolves, strategic planning and favorable economic conditions will be key to sustaining its momentum and ensuring future growth in this dynamic sector.
In the first quarter of 2023, the mechanical engineering sector displayed remarkable tenacity, with output continuing to surge (+6X). This marked the ninth consecutive quarterly increase, a testament to the post-COVID industrial recovery. The rebound has propelled output to unprecedented levels, surpassing even the heights recorded before 2019, reveals EUROFER’s latest reportYet, the sector treads on uncertain terrain, vulnerable to lingering downside risks. Russia's invasion of Ukraine and the rapid deterioration of the economic and industrial outlook in early 2023 cast shadows over its growth prospects. While the current challenges have not fully impacted mechanical engineering's output, its growth is projected to wane in the second quarter of 2023 and the fourth quarter. However, there is optimism for a return to positive territory in the first half of 2024.Following a significant downturn (-11.8%) in 2020 due to the pandemic, mechanical engineering experienced a sturdy resurgence (+13.4%) in 2021. The strong recovery in EU industrial sectors, especially in the first half of the year, fueled this growth. Despite the war-related disruptions and an energy shock, the sector demonstrated robust expansion in 2022 (+7.9%).Nevertheless, the forecast for 2023 anticipates only a slight increase (+1%, revised upwards from +0.5%) due to the lingering weakness in the overall manufacturing sector and economic uncertainties driven by inflation. Barring unforeseen circumstances, the second half of 2023 could witness overall improvements in the economy and industry, paving the way for slightly higher output growth in 2024 (+12%).In the face of turbulence, the mechanical engineering sector stands as a testament to resilience, forging ahead despite the odds. As the industrial landscape evolves, strategic planning and favorable economic conditions will be key to sustaining its momentum and ensuring future growth in this dynamic sector.
