Eurozone June Industrial Output Grows Less than Expected



Industrial production in the Euro Area rose by 2.5 percent year-on-year in June 2018, following an upwardly revised 2.6 percent gain in the prior month while markets had expected it to advance 2.6 percent. Output grew less for intermediate goods and non-durable consumer goods and contracted further for energy.

Year-on-year, output advanced at a softer pace for both intermediate goods (1.8 percent vs 2.4 percent in May) and non-durable consumer goods (2.8 percent vs 3.4 percent). Also, production tumbled for energy (-2.8 percent vs -1.8 percent); while it picked up for capital goods (4.3 percent vs 3.9 percent) and rebounded for durable consumer goods (0.9 percent vs -0.1 percent).

In the EU28, industrial activity rose 2.6 percent (the same pace as in May), as sharper production of capital goods (4.4 percent vs 3.9 percent) and durable consumer goods (2.2 percent vs 1.6 percent) was offset by a decline in that of energy (-2.0 percent vs -1.3 percent) and by a slowdown in output of intermediate goods (2.1 percent vs 2.4 percent). Meantime, non-durable goods increased at a solid pace (3.1 percent, the same as in May).

Among Member States for which data are available, the highest increases in industrial production were registered in Ireland (+7.7%), Romania (+7.0%), the Czech Republic (+6.9%) and Poland (6.7%). Decreases were observed in Denmark (-1.2%), Portugal (-1.0%) and the Netherlands (-0.2%).

On a monthly basis, industrial output fell 0.7 percent, compared to an upwardly revised 1.4 percent gain in May and market expectations of a smaller decrease of 0.4 percent. Output contracted for: intermediate goods (-0.5 percent vs 1.8 percent); capital goods (-2.9 percent vs 0.7 percent); durable consumer goods (-0.4 percent vs 2.0 percent) and non-durable consumer goods (-0.6 percent vs 2.7 percent). Energy production, however, increased more (0.5 percent vs 0.4 percent).

In the EU28, output droppped 0.4 percent, following an upwardly revised 1.3 percent in May, amid declines in production of intermediate goods (-0.3 percent vs 1.7 percent); capital goods (-2.0 percent vs 0.7 percent); durable consumer goods (-0.2 percent vs 2.0 percent) and non-durable consumer goods (-0.1 percent vs 2.5 percent). In contrast, energy production recovered (0.5 percent vs -0.2 percent).

Among Member States for which data are available, the largest decreases in industrial production were registered in Ireland (-8.9%), the Netherlands (-1.3%) and Hungary (-1.2%), and the highest increases in Croatia (+4.5%), Romania (+1.7%), the Czech Republic and Finland (both +1.5%).


Eurozone June Industrial Output Grows Less than Expected


Eurostat | Luisa Carvalho | luisa.carvalho@tradingeconomics.com
8/14/2018 10:51:17 AM