FINAT RADAR

FINAT Radar #25 (survey release October 2024)

In Q3 2024, the Eurozone saw uneven performance across its member countries, with Germany, the region’s largest economy, facing particular challenges. Germany narrowly avoided recession as industrial output declined, impacted by weaker global demand for exports, especially from China. Despite this, Germany’s economy showed some resilience in September, with domestic consumption providing modest support amid easing inflationary pressures.

European consumer sentiment in Q3 2024 continued to exhibit caution, with households adjusting their spending in response to inflation and economic uncertainty. Germany, traditionally a strong
consumer-driven economy, saw a significant drop in consumer confidence due to rising energy prices and concerns about job security in key industries such as automotive and manufacturing. In contrast, Southern European countries experienced slightly more optimistic consumer sentiment.
The self-adhesive label market in Europe mirrored the broader economic sentiment, experiencing a more measured recovery in Q3 2024. Germany, a key market for automotive, packaging, and logistics labels, saw slower-than-expected demand as its manufacturing sector weakened. Looking ahead, the European economy is expected to maintain a slow but steady recovery, with significant variations across countries. However, continued economic divergence between Northern and Southern Europe may lead to varying demand patterns across the region.

FINAT Radar #24 (survey release July 2024)

Lower energy costs helped the German economy to emerge from recession in the first quarter of 2024, driven by a recovery in production within energyintensive sectors such as the chemicals
industry. However, the German economy still lags behind other large European economies in terms of growth.

Notably, Spain continues to exceed expectations, with GDP growth accelerating for the third consecutive quarter. While the post-pandemic normalisation of tourism has been a significant
factor, industrial production in Spain is also continuously expanding. Additionally, second-round effects on core inflation have been more muted in Spain than in many other countries.

The self-adhesive industry in Europe showed positive year-onyear growth for another quarter, bouncing back from a -27% decline in Q2 2023. This indicates that consumer demand for self-adhesive products is gradually recovering, and overall sales growth is being boosted by the previous year’s destocking.