Home appliances manufacturer Electrolux has warned that European consumer demand for products such as fridge-freezers, dishwashers and washing machines looks set to decline.
In its latest trading update, the firm tipped European demand for appliances to fall by one per cent this year, having previously predicted positive growth of one per cent. It also predicted that North American demand would slump by between four and five per cent.
“Third-quarter results were impacted by continued tough market conditions. Demand declined further in several ... main markets in southern Europe and the US, at the same time as the cost of raw materials increased,” said Electrolux chief executive Keith McLoughlin.
While consumer demand in many developed countries has taken a tumble, Electrolux has sought to maintain growth by stepping up its presence in emerging markets. The company said it would look at ways to improve production capacity and efficiency at its North American and European plants.
The report came after China Electric Apparatus Research Institute home appliances expert Huang Wenxiu told the Southern Metropolis Daily that the price of domestic devices could increase if tighter European Commission environmental standards are applied to Chinese-made goods.