Euro Area: Industrial production growth softens in September
Industrial output increased 0.9% over the previous month in seasonally adjusted terms in September, following Augusts 2.0% rise. Septembers result reflected a softer increase in the production of capital goods, sharper contractions in the production of energy and intermediate goods as well as a turnaround in the production of durable consumer goods. On the flip side, the production of non-durable consumer goods expanded at a faster clip.
Looking at the individual economies for which data is available, industrial output expanded in seven countries, while it contracted in 11. Focusing on the most important economies, production increased in the Netherlands, while it contracted in France, Germany, Italy and Spain.
On an annual basis, industrial production rose 4.9% in September, following Augusts 2.8% increase. Lastly, annual average growth in industrial production rose to 0.5% from Augusts 0.4%.
Commenting on the outlook, Bert Colijn, senior economist at ING, stated:
“The third quarter saw remarkably strong production as easing supply problems helped production growth. Dont expect this to continue much from here on as new orders, production expectations and increasing inventories point to weakening production ahead.”