Manufacturing is in decline worldwide, a development that some worried economists liken to the trends that heralded the Great Depression. Europe has seen its industrial production drop 12% in the last year, mirroring declines in the United States, Brazil, Taiwan, and China. Economists fear that the declines will build on themselves, as decreased demand for manufacturing prompts layoffs, which cause consumers to spend less, which in turn leads to even lower demand for manufacturing.
See "Rapid declines in manufacturing spread global anxiety", Nelson D. Schwartz, International Herald Tribune, March 19, 2009