The Forecast

LMC continues to  predict YoY growth for Western Europe in 2023 because of a weak 2022. However, supply constraints still loom. “Underlying demand faces challenges too, with many the West European countries currently facing recessionary conditions and weak growth thereafter. In recent months though, consumer sentiment has become a little less pessimistic, and with a backlog of orders, we still view that a faster recovery in production this year would be supported by demand. However, it remains clear that rising costs of living and elevated levels of inflation seen across the region pose a downside risk to our forecasts,” LMC said.