Euro Area: Industrial production tanks at in July
Industrial output fell 2.3% over the previous month in seasonally-adjusted terms in July, contrasting June’s 1.1% increase. July’s result reflected downturns in the production of capital goods; sharper contractions in the production of intermediate and durable consumer goods; and a softer expansion in the production of energy more than offsetting a rebound in the production of non-durable consumer goods.
Looking at the individual economies for which data is available, industrial output contracted in ten countries, while it expanded in eight. Looking at the most important economies, production decreased in Germany, France and Spain while it increased in Italy and the Netherlands.
On an annual basis, industrial production shrank 2.4% in July, contrasting June’s 2.2% increase. Lastly, annual average growth in industrial production moderated to 0.6% from June’s 1.5%.
Commenting on the outlook, Bert Colijn, senior economist at ING, stated:
“For the months ahead, the outlook remains relatively bleak. The energy crisis has started to result in production cuts across the eurozone for the most gas-intensive producers and other supply problems have faded but not disappeared. On top of that, demand for goods is also weakening. [..] Overall, this suggests modest production expectations for the second half of the year in manufacturing for now.”