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EU Industrial Production Steady Despite Cut in Gas Consumption

NATURAL GAS

European industrial output remained resilient despite soaring gas prices in 2022 as manufacturers cut energy use according to Bloomberg research.

  • The manufacturing sector in major European gas consuming countries cut gas use by nearly 30% in Q4 2022, suggesting a decoupling of industrial production and gas use.
  • The link was likely broken by a mix of limited fuel switching, energy efficiency gains and outsourcing of gas-intensive processes.
  • There is little evidence of substitution with other fuels like coal or oil products suggesting improvements in energy intensity and the emissions intensity of European industry.

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