European Union (EU) industry is in good shape for further growth over the coming months, according to a new report.

The European Commission's Industrial policy: Reinforcing competitiveness study revealed that although recovery in the region following the worldwide economic downturn has been slow and "relatively fragile", the situation is gradually improving.

Antonio Tajani, vice-president of the European Commission and responsible for industry and entrepreneurship within the body, said: "European industry is in a good shape and ready to compete. However, the slowdown of the recovery should push us to put even further competitiveness and growth at the top of the political agenda."

He advised structural reforms undertaken by the governments of the EU member states should help to free the potential of entrepreneurs so they can assist with the economic recovery, something that may generate more industry jobs.

According to Eurostat, the statistical office of the EU, seasonally adjusted industrial production within the region increased by 1.2 per cent between July and August 2011.

Posted by Alex Donnell