According to Reuters, the third quarter of 2022 saw a decline in the demand for industrial gas in Europe as a result of industries closing and concerns that some might never reopen.
The agency said that the industries with heavy energy consumption, such as aluminum, fertilizers and chemicals, are at risk of converting production to places with cheap gas such as the United States, where blue fuel is about 5 times cheaper than Europe.
While lower energy use in Europe helps to confront the crisis, executive officials and economists warn that the industrial base may weaken severely if the high energy costs continue for a long time.
A senior official at E. on claims that many businesses are merely ceasing manufacturing, which could be the cause of Europe’s declining industrial output.
As evidenced by this, the data of the industry’s purchasing managers index for the month of October 2022 showed a continuous decrease in production, which indicates that Europe is heading towards stagnation.
From Reuters.
The energy crisis weakens Europe’s industrial might.
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