EU industrial orders up, textiles in decline

European textile manufacturing has declined by almost five per cent over the last year, according to official EU statistics issued on Wednesday.

The manufacture of textiles and textile products in June 2005 has decreased by 4.6 per cent in the EU25 since the same period last year.

Textiles are in decline amid a row over Chinese imports after the lifting of world trade quotas in January 2005.

The new year saw orders down 8.5 per cent with a collapse in demand accelerating to minus 13.5 per cent in March 2005 as Chinese textile imports surged.

Pressure from European textile producers saw the imposition of new quotas this June – measures that are currently hitting retailers.

In most other sectors, demand for transport and electronic equipment have driven a surge in industrial orders

Eurozone order books for June 2005 were 3.1 per cent up on May and 4.9 per cent up on the same period last year.

Across the EU’s 25 member states industrial orders grew by 2.4 per cent on May and were up 5.2 per cent on June 2004.

Orders for electrical equipment soared by 8.9 per cent across the EU25, with transport equipment books up 8.3 per cent.

Manufacturing of machinery and equipment increased by 4.6 per cent in the euro-zone and by four per cent across the EU.

The strongest rise was in Latvia with a massive 38.2 per cent surge and orders in Europe’s largest economy Germany were up 10.5 per cent.

The surge in new industrial orders are a key indication of demand in the manufacturing sector and future EU growth prospects.

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