The economic performance of Europe’s industry is softening fast. Manufacturing production is still buoyant in Central Europe but will continue declining throughout 2012 in most of the Eurozone. With the financial crisis not over yet, prospects for 2013 and beyond bear many downside risks. The Eurozone’s recession is forecast to last through the third quarter of 2012, and Greece, Portugal, Belgium, Spain, Italy, the Netherlands, Slovenia, and Hungary will record negative GDP growth for calendar year 2012. Manufacturing output will grow below 2 percent in 2012 and 2013.

• The Eurozone’s recession is forecast to last through the third quarter of 2012.
• Manufacturing output will grow below 2 percent in 2012 and 2013.
• Financial markets continue to stymie confidence and capital formation.