European slowdown may hit leather sector
According to reports, many European companies are preparing for a significant economic slump as the year continues. As a result, many jobs have been axed and production in many areas has had to be reduced. Many firms are refusing to employ new staff unless it is entirely unavoidable.
Affecting all sectors, including vehicle manufacturers—for example BMW and Fiat—as well as furniture and apparel makers, one industry that looks set to take a hit is the European leather sector. As rising energy and raw material prices strike, the sector appears relatively vulnerable.
However, while the economic forecasts in Ireland, Spain and the UK are fairly bleak, reports from Germany and the Benelux area are more optimistic. However, there are very few reports that have not admitted that the economy may be at risk in the near future. While economic growth in Europe was 0.7% in the first quarter, experts are predicting a downturn in the second quarter.
