Home Latest News & Insights Macroeconomics and Geopolitics

Macroeconomics and Geopolitics

INDUSTRIAL OUTPUT GROWS IN DECEMBER 2023
industrial produciton

Industrial output grows in December. Industrial output experienced a significant rise of 2.6% in both the eurozone and the European Union (EU) in December 2023.

Eurostat, the European Union’s statistical authority, reports these figures against those from November 2023.

This comes after a modest increase of 0.4% in the euro area and 0.5% in the EU during November 2023.

Comparing December 2023 to the same month in the previous year, there was a 1.2% increase in industrial production across both the euro area and the EU.

However, when looking at the entirety of 2023, the average industrial production declined by 2.4% in the euro area and by 2.0% in the EU, in comparison with the year 2022.

EU GDP STABLE WHILE JOBS GROW
gdp

EU GDP stable while jobs see grow. In the final quarter of 2023, the gross domestic product (GDP) showed no change in the eurozone.

At the same time, there was a slight 0.1% uptick in the European Union (EU), as revealed by preliminary figures from Eurostat, the EU’s statistical department.

This modest growth in GDP for both the euro area and the EU follows a slight contraction of 0.1% experienced by both regions in the third quarter of 2023.

Job numbers were on the rise in both the euro area and the EU, with employment rates increasing by 0.3%. This demonstrates an upward trend in job creation alongside stable economic growth.

These preliminary estimates offer an early look at the economic health of the euro area and EU.

GERMAN CONSTRUCTION SENTIMENT PLUMMETS
plant building

German construction sentiment plummets. The ifo Institute reports a historic low in German residential construction sentiment. The business climate index has fallen to -59.0, marking the lowest value ever recorded.

Business expectations also declined, reaching -68.9 points. Klaus Wohlrabe, ifo’s Head of Surveys, highlighted the sector’s bleak outlook.

He noted the significant impact of order shortages and project cancellations. Despite a slight improvement, Wohlrabe cautioned against optimism, citing unchanged tough conditions.

High interest rates and construction costs continue to challenge the industry. The ifo Institute’s findings emphasize the severe downturn in the residential construction sector.

Polymers such as PP, PS, PC, PMMA, and POM, are feeling the pinch of the construction sector’s downturn, not only in Germany but also across the EU. Market conditions for these polymers, heavily reliant on construction activity, reflect this trend, with many suppliers reporting low demand from the sector.