Euro Area: Industrial production eases in June
Industrial output expanded a seasonally-adjusted 9.1% over the previous month in June, following May’s 12.3% increase which had marked the strongest jump on record.
June’s easing reflected a broad-based moderation in output across the major categories, with production of both capital and durable consumer goods slowing the most. Meanwhile, non-durable consumer goods output picked up from May.
Looking at the individual economies for which data is available, industrial production expanded in 14 countries, while it dropped in two countries. Heavyweights Germany, France, Italy and Spain recorded significant increases again, though production eased in all except Germany where it picked up. At the same time, output dropped in Belgium and Finland.
On an annual basis, industrial production plunged 12.3% in June, following May’s 20.4% dive. Lastly, annual average variation in industrial production fell to minus 7.5% from May’s minus 6.7%.
Commenting on the release, Bert Colijn, Eurozone senior economist at ING, stated:
“Whether the V (-shaped recovery) will be completed in the summer months remains the question. We expect that it will fall short due to a lack of demand in the aftermath of the crisis, supply chain disruptions and even a possible flareup of the trade war. We now have to ask at what point will the mechanical recovery level off, giving a better idea of the lasting damage of the coronavirus crisis.”