Eurozone Industrial Output Falls More than Expected


Industrial production in the Euro Area declined 2 percent from a year earlier in July 2019, following a 2.4 percent fall in the previous month and compared to market expectations of 1.3 percent drop. This was the ninth consecutive month of contraction in the industry sector.

Capital goods production posted the steepest fall in July (-3.4 percent vs -4.0 percent in June), followed by intermediate goods (-3.0 percent vs -3.5 percent) and energy (-1.4 percent vs -0.6 percent). In contrast, durable consumer goods output grew 1.8 percent (vs -1.2 percent in June) and non-durable consumer goods production increased 1.5 percent (vs 1.7 percent in June).

Among Eurozone's largest economies, Germany's industrial output contracted by the most (-5.3 percent vs -5.9 percent), followed by Italy (-0.7 percent vs -1.2 percent) and France (-0.3 percent vs -0.4 percent). On the other hand, Spain's industrial activity rose 0.3 percent, compared to 1.3 percent growth in June.

In the EU28, industrial output dropped 1.2 percent in July (vs -1.8 percent in June), due to lower production of capital goods (-2.6 percent vs -3.4 percent), intermediate goods (-2.2 percent vs -2.8 percent) and energy (-1.7 percent vs 0.2 percent). Meanwhile, output rose for both durable (1.8 percent vs -0.7 percent) and non-durable consumer goods (2.3 percent vs 1.4 percent).

On a monthly basis, industrial output fell 0.4 percent in July (vs -1.4 percent in June and market forecasts of -0.1 percent), as production dropped for non-durable consumer goods (-0.8 percent vs -1.6 percent), energy (-0.7 percent vs -0.5 percent), and intermediate goods (-0.3 percent vs -1.2 percent). On the other hand, capital goods output jumped 1.8 percent (vs -3.6 percent in July) and durable consumer goods production rebounded 1.2 percent (vs -1.3 percent in June).

The biggest output declines were seen in Germany (-0.8 percent vs -1.5 percent), Italy (-0.7 percent vs -0.3 percent) and Spain (-0.6 percent vs -0.3 percent), while France's production increased slightly (0.2 percent vs -2.4 percent).

Eurozone Industrial Output Falls More than Expected


Eurostat | Joana Ferreira | joana.ferreira@tradingeconomics.com
9/12/2019 9:27:06 AM