Euro Area: Industrial production growth softens in March
Industrial output rose 0.6% in month-on-month seasonally adjusted terms in March, which followed February’s 1.0% increase. March’s deceleration was driven by softer growth in the production of capital goods; a sharper decline in the production of non-durable consumer goods; and downturns in the production of intermediate and durable consumer goods. On the flipside the production of energy contracted less sharply.
The month-on-month expansion was primarily fueled by a significant rise in the notoriously volatile Irish industrial output. Looking at the largest economies, industrial output swung to contraction in France, Germany, Italy, the Netherlands and Spain.
On an annual basis, factory output fell 1.0% in March (February: -6.3% yoy).
Commenting on the outlook, ING’s Bert Colijn stated:
“While it is too early to call the start of the recovery yet, we do expect some recovery to happen over the second half. Consumer spending should get a boost from higher real wage growth, with the goods cycle starting to turn.”