Eurozone: After a notable expansion in February, industrial production contracts in March
May 13, 2015
The Eurozone’s industrial production contracted 0.3% over the previous month in seasonally-adjusted terms. The result contrasted the revised 1.0% expansion (previously reported: +1.1% month-on-month) and undershot the flat reading that markets had expected. A year-on-year comparison showed that industrial production growth moderated slightly from 1.9% in February to 1.8% in March.
According to the statistical office (Eurostat), the monthly drop was due to a fall in energy production, as well as a result of contractions in the production of durable, capital and intermediate goods. At a country level, a massive increase in Latvia’s industrial production (+10.9% mom), along with a notable expansion in Ireland’s output (+3.0% mom) were overshadowed by contractions in the Netherlands (-3.6% mom), Lithuania(-3.4% mom) and Estonia (-1.0% mom).
Regarding the region’s four major economies, industrial production fell 0.2% and 0.7% over the previous month in France and Germany, respectively. Conversely, in Italy and Spain, industrial production increased 0.4% and 1.0%, respectively.
Author: Ricardo Aceves, Senior Economist