Euro Area: Industrial production increases at softer pace in June
Industrial output rose 0.7% over the previous month in seasonally adjusted terms in June, decelerating from May’s 2.1% increase. June’s result reflected downturns in the production of intermediate, durable and non-durable consumer goods as well as a softer expansion in the production of capital goods more than offsetting a rebound in energy production.
Looking at the individual economies for which data is available, industrial output expanded in eight countries, while it contracted in 10. Looking at the most important economies, production increased in Germany, France and Spain while it decreased in Italy and the Netherlands.
On an annual basis, industrial production expanded 2.4% in June, following May’s 1.6% increase. Lastly, annual average growth in industrial production moderated to 1.6% from May’s 2.3%.
Commenting on the outlook, Bert Colijn, senior economist at ING, stated:
“Fading supply chain problems have led businesses to increase production in recent months. But with backlogs of work shrinking and new orders falling, there is not much reason for optimism in the months ahead.”