Monday, February 21, 2022
Despite the corona virus hiatus crippled the global woodworking and processing supply chain sector, the industrial production experienced a steep growth by 1.2% in December 2021, in the euro area and by 0,7% in the EU, compared with November 2021, according to Eurostat statistics1. On the other hand the annual basis, the output remained positive showing an increase of the industrial production in December 2021 by 1.6% in the euro area and by 2.5% in the EU, compared to December 2020.
As far as the production of capital goods records are concerned last year, in the eurozone it was recorded that in December 2021 the production increased by 2.6% in the euro area and by 1.8% in the EU, in comparison to November 2021. On annual basis, the production of capital goods fell by 1.0% in the euro area and by 0,8% in the EU, compared to December 2020.
With the beginning of 2022, the market witnessed positive growth and euro manufacturing segment showed signs of positive improvement despite the disruptions in supply chain system in 2021. Though the sector is struggling to improve it is still experiencing issues such as supply bottlenecks, delivery delays, price hikes and Covid-19 related uncertainty will continue to strain the economic activities into 2022. Besides this, there is the high energy costs associated with the crude oil, coal and natural gas that are likely dampen spending.
As a direct consequence, higher energy costs have pushed up prices of goods and services, including food prices, leading to a sharp rise in inflation in recent months in eurozone. Indeed, inflation in the euro area increased to 5.1% in January 2022, from 5.0% in December 2021, according to ECB data, and it is likely to remain high in the near term. However, economy is affected less and less by each wave of pandemic and the growth in the euro area should rebound strongly over the course of 2022, driven by robust domestic demand.
Tags: corona virus, Eumabois, Eurostat, eurozone, supply chain, woodworking and manufacturing, woodworking Europe, woodworking industry
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