Euro Area: Industrial production contracts in August amid supply chains bottlenecks

Euro Area Industry August 2021

Euro Area: Industrial production contracts in August amid supply chains bottlenecks

Industrial output decreased a seasonally-adjusted 1.6% over the previous month in August, contrasting July’s 1.4% rise. August’s drop reflected downturns in the production of intermediate, capital, durable and non-durable consumer goods. On the other hand, the production of energy bounced back over the prior month.

Looking at the individual economies for which data is available, industrial output shrank in 10 countries, while it expanded in eight countries. Within the most important economies, production increased in France and Spain while it fell in Germany and Italy.

On an annual basis, industrial production increased 5.1% in August, following July’s 8.0% rise. Lastly, annual average growth in industrial production improved to 5.8% from July’s 4.8%.

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

“The supply side problems are starting to be reflected more in the growth figures for 2H 2021, and are contributing to the slide in GDP growth expected for this half of the year. We still expect strong overall growth to persist and take solace from continued strong incoming demand. For now, it does not look like supply side problems will cause a hard landing, but to cause some turbulence along the flight back to normality.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest