Eurozone Industrial Output Falls for 1st Time in 1-1/2 Years


Industrial production in the Euro Area edged down 0.1 percent from a year earlier in July 2018, following a downwardly revised 2.3 percent growth in the previous month and missing market consensus of a 1 percent increase. It was the first output contraction since January 2017 mainly due to declines in production of durable consumer goods and energy.

Production of durable consumer goods posted the biggest decline (-2.3 percent vs 1.4 percent in June), followed by energy (-2.1 percent vs -3.4 percent), non-durable consumer goods (-0.5 percent vs 2.3 percent), and intermediate goods (-0.1 percent vs 1.7 percent). On the other hand, capital goods output grew 1.4 percent, easing from a 4.5 percent advance in the previous month.

In the EU28, industrial production went up 0.8 percent in July, following a 2.5 percent gain in June, as output increased at slower pace for capital goods (2.1 percent vs 4.5 percent), intermediate goods (0.6 percent vs 2.1 percent), non-durable consumer goods (0.5 percent vs 2.7 percent), and durable consumer goods (0.3 percent vs 2.4 percent). Energy output, however, continued to contract (-0.9 percent vs -2.6 percent).

Among Member States for which data are available, the highest increases in industrial production were registered in Poland (7.9 percent), the Czech Republic (6.7 percent) and Slovenia (5.9 percent), and the largest decreases in Malta (-6.4 percent), Ireland (-6.2 percent) and the Netherlands (-2.1 percent).

On a monthly basis, industrial output shrank 0.8 percent in July, the same pace as in June and worse than market expectations of a 0.5 percent drop. Output fell for: durable consumer goods (-1.9 percent vs -0.1 percent); non-durable consumer goods (-1.3 percent vs -1.1 percent); and intermediate goods (-0.8 percent vs -0.5 percent). By contrast, there was a rebound in production of both capital goods (0.8 percent vs -1.9 percent) and energy (0.7 percent vs -0.2 percent).

In the EU28, output dropped 0.7 percent in July, following a decline of 0.5 percent in June, due to lower production of non-durable consumer goods (-1.3 percent vs -0.4 percent), durable consumer goods (-1 percent vs -0.1 percent), and intermediate goods (-0.6 percent vs -0.4 percent). On the other hand, energy output rose 0.7 percent, after being unchanged in the previous month; and production of capital goods moved up 0.6 percent, recovering from a 1.3 percent slump in June.

Among Member States for which data are available, the largest decreases in industrial production were registered in Malta (-6.3 percent), Croatia (-5 percent) and Sweden (-4.1 percent), and the highest increases in Denmark (3.6 percent), Ireland (2.8 percent) and Latvia (1.8 percent).

Eurozone Industrial Output Falls for 1st Time in 1-1/2 Years


Eurostat | Joana Ferreira | joana.ferreira@tradingeconomics.com
9/12/2018 9:40:45 AM