On 10 November 2023, amid mounting pressure on the companies which make up our sector, MET employers published their 2023/2024 Economic Outlook.
MET economists have given a very pessimistic prognosis for our industries, and the economy more broadly. This outlook is characterised by a slowdown in growth and persistently high inflation, which are huge challenges for competitiveness vis-à-vis international competitors.
Manufacturing is often seen as the bellwether of the economy and if this is to be believed, the European economy is set for a tough time ahead. The latest version of this publication highlights the negative outlook for much of our sector and some of the member countries of Ceemet. While we are seeing resilience in some sub-sectors and countries, the overall news is not good.
Order books are steadily emptying and negative business sentiment is affecting investments. On top of that, MET companies are experiencing record high vacancy rates alongside energy prices that are well above their long-term average. By nearly all metrics, the outlook can only be described as bleak.
However, one metric is returning a positive result, our employment figures. Our industries continue to directly employ over 17 million people, a remarkable achievement considering the multiple crises which companies have had to endure over the past years. Another positive development is the easing of supply chain bottlenecks for much of our sector, this has undoubtedly been a contributing factor to our industries avoiding recession. However, such effects have their limitations.
