Eurozone Industrial Output Contracts More than Expected

Industrial production in the Euro Area dropped 2.8 percent from a year earlier in August 2019, following an upwardly revised 2.1 percent fall in the previous month and compared with market expectations of a 2.5 percent decrease. This was the tenth consecutive month of contraction in the industry sector and the steepest since December 2018.
Eurostat | Agna Gabriel | agna.gabriel@tradingeconomics.com 10/14/2019 9:34:47 AM
Output fell for energy (-3.3 percent vs -1.3 percent in July); intermediate goods (-3.1 percent vs -2.9 percent); capital goods (-2.9 percent vs -3.2 percent) and non-durable consumer goods (-2 percent vs 0.5 percent). Also, durable consumer goods production slowed (0.4 percent vs 1.8 percent). 

Among Eurozone's largest economies, Germany's industrial output contracted by the most (-5.0 percent vs -5.1 percent in July); followed by France (-1.8 percent vs a flat reading) and Italy (-1.8 percent vs -0.7 percent). On the other hand, Spain's industrial activity rose 1.8 percent, compared to 0.5 percent growth in July.

On a monthly basis, industrial output increased 0.4 percent in August, recovering from a 0.4 percent fall in the previous month and above market forecasts of a 0.3 percent rise. It was the first monthly gain in industrial activity since May, as output rebounded for intermediate goods (0.3 percent vs -0.2 percent in July) and continued to advance for capital goods (1.2 percent vs 2.1 percent). By contrast, output fell for energy (-0.4 percent vs a flat reading); durable consumer goods (-0.4 percent vs 1.3 percent) and non-durable consumer goods (-0.3 percent vs -1.6 percent). 

The biggest output rises were seen in Spain (1.1 percent vs -0.4 percent); Germany (0.6 percent vs -0.6 percent), Italy (0.3 percent vs -0.8 percent), while France's production decreased (-0.8 percent vs 0.2 percent).

Eurozone Industrial Output Contracts More than Expected