Euro Area: Industrial production contracts at softer pace in September
Industrial output decreased a seasonally-adjusted 0.2% over the previous month in September, following August’s 1.7% fall. September’s drop reflected declines in the production of intermediate and capital goods. On the other hand, the production of durable and non-durable consumer goods expanded, while the production of energy was unchanged from the prior month.
Looking at the individual economies for which data is available, industrial output shrank in seven countries, while it expanded in 10 countries. Within the most important economies, production decreased in France and Germany while it increased in Italy and Spain.
On an annual basis, industrial production increased 5.2% in September, following August’s 4.9% rise. Lastly, annual average growth in industrial production improved to 6.9% from August’s 5.8%.
Commenting on the release, Bert Colijn, Eurozone senior economist at ING, stated:
“September production data […] is in line with a downward trend over the past few months. As orders continue to come in hot, supply problems are likely to mainly affect industrial goods’ prices, a big theme for the ECB in the coming quarters.”