Germany recently raised its economic growth forecast for the year to 0.4 percent, up from the previous 0.2 percent, but the environment in both the United States and Europe remains persistently difficult. It remains uncertain how sharply higher interest rates will fully impact the economy.
“Supply constraints are easing everywhere which on the surface looks like a good thing. But it likely also means that backlogs will wane in the second half of the year. In the absence of new demand, output will likely be weak,” said Shawn DuBravac, IPC chief economist.
IPC‘s April 2023 Economic Outlook also reports that the U.S. economy grew 1.1 percent in the first quarter of 2023, lower than the expected rise of 1.9 percent. The European economy grew up 0.1 percent in the euro area and up 0.3 percent in the EU over the same period. The European economy is up 1.3 percent in both areas compared to the first quarter of last year. In the EU, manufacturing output in electronics end markets rose in February, increasing 1.3% from the prior month and 2.9% from the year-ago period.
