U.S. economic recession affects European construction machinery industry growth

According to recent predictions by US economists, the growth of the construction machinery industry in Europe may be slowed down in 2008 due to the economic recession in the United States. The Royal Bank of Scotland, through its preliminary forecast of the growth index of European manufacturing listed companies, believes that the index will fall from 52.8 in January 2008 to 52.3 in February 2008.

Slower European manufacturing growth has increased the likelihood of the European Central Bank lowering interest rates. The EU has reduced its forecast for Europe's manufacturing growth in February 2008, with a forecast value of 1.8%. This will be the lowest monthly increase since 2005. The EU also raised its forecast for inflation. The European Commission said that high energy prices and higher food prices have accelerated inflation. In February 2008, EU inflation will increase by 2.6%, which is higher than the 2.1% forecast in November 2007. For the EU, the economic recession in the United States, rising raw material prices, and rising interest rates on credit will affect the growth of the European construction machinery industry.

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