Euro Area: Industrial production rebounds in October

Euro Area Industry October 2021

Euro Area: Industrial production rebounds in October

Industrial output increased a seasonally-adjusted 1.1% over the previous month in October, contrasting September’s 0.2% dip. October’s growth reflected rises in the production of durable and non-durable consumer goods as well as of capital goods and energy. On the other hand, the production of intermediate goods slipped.

Looking at the individual economies for which data is available, industrial output expanded in 12 countries, while it contracted in five countries. Within the most important economies, production in in France and Germany while it decreased in Italy and Spain.

On an annual basis, industrial production increased 3.3% in October, following September’s 5.1% rise. Lastly, annual average growth in industrial production improved to 7.6% from September’s 6.9%.

Commenting on the release, Bert Colijn, Eurozone senior economist at ING, stated:

“The current level of industrial production is still below the level reached at the beginning of this year. And let’s not forget that the Covid-19 infection rate was relatively low in October. The new Omicron wave could hamper production during the winter as factories are confronted with a growing number of workers who are absent because of illness or quarantine. That is why we still see weaker growth in 4Q 2021 and 1Q 2022, notwithstanding the strong start of the current quarter. That said, we believe that manufacturing will be one of the big growth drivers in 2022. The assessment of order books remains at a historically high level. As supply-side issues are likely to dissipate gradually in the course of next year, industrial production should be able to catch up with swelling order books, giving a significant boost to GDP growth.”

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