Euro Area: Industrial production eases considerably in August

Euro Area Industry August 2020

Euro Area: Industrial production eases considerably in August

Industrial output expanded a seasonally-adjusted 0.7% over the previous month in August, following July’s stronger 5.0% increase.

August’s slowdown reflected downturns in production of capital and non-durable consumer goods as well as a softer expansion in the production of intermediate goods. On the other hand, the expansion in the production of energy and of durable consumer goods strengthened.

Looking at the individual economies for which data is available, industrial output expanded in 12 countries, while it dropped in five countries and flatlined in Spain. Production increased in heavyweights France and Italy—with the latter recording a notable jump. At the same time, output dropped in Germany and Greece, while it plunged in Ireland.

On an annual basis, industrial production fell 7.2% in August, following July’s 7.1% decrease. Lastly, annual average variation in industrial production fell to minus 8.3% from July’s minus 7.9%.

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

“The big question […] is how industry can continue to perform in the fourth quarter of the year. With rebound effects fading, second waves emerging and restrictive measures becoming more intrusive for business, there is no doubt that the rosy figures related to the rebound from the first lockdown are a thing from the past. After the strong growth figures for the third quarter, eking out small gains in 4Q looks like a pretty good result at the moment.”

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