The Commission published its latest outlook for EU industry in which it points out that industry is 1% down. In particular, in the last three months to November 2011, manufacturing production was some 1% higher than a year ago, but also 1% below the level registered in the preceding three months. Furthermore, the Commission confirms that business confidence has declined, but still remains broadly at its long-term average.

The January 2012 report published by the European Commission on the EU industry show that the industry down 1%. Although manufacturing production was some 1% higher than a year ago, it was also 1% below the level registered in the preceding three months. Most of the sectors are again declining with the biggest contractions in production occurring in textiles, furniture, leather, printing and computer industries. Recent data and forecasts for services, including tourism, remain positive, but their performance will depend on the general economic situation. In October 2011, the Commission published a Communication a report which showed that a coordinated industrial and SMEs policies from the Member States can ensure sustainable economic recovery.

With regard to the manufacturing employment, data shows that the number of persons employed remained broadly stable. Although the unemployment rate remained stable in November at a record high level, the situation differs greatly between countries. Deteriorating employment expectations suggest little room for further improvement.

The report published by the Commission also highlights that business confidence has declined, even if still remains broadly at its long-term average. Uncertainties about the prospects for the European economy in the light of the euro area debt crisis have negatively affected investment, whilst firms have trimmed output to avoid inventory accumulation. Continued high energy prices, fiscal consolidation and persistent difficulties in access to finance continue to adversely affect the dynamics of the recovery. The data shows that output in the construction sector remains close to its cyclical trough: a limited recovery in civil engineering works has been offset by continued weakness in house building.