Eurozone: Eurozone industrial production contracts for second consecutive month
August 12, 2015
The Eurozone’s industrial production contracted 0.4% in June over the previous month and marked a second consecutive decrease. The reading followed the revised 0.2% drop observed in May (previously reported: -0.4% month-on-month) and exceeded the 0.1% decline the markets had expected. An annual comparison showed that the Euro area’s industrial output moderated from a 1.6% increase in May to 1.2% expansion in June.
According to Eurostat, the monthly contraction mainly reflected a decrease in manufacturing output, particularly manufacturing of durable consumer goods, capital goods and intermediate goods. The production of energy increased over the previous month.
Among the Eurozone economies, for which data was available, the decrease was led by a contraction in Portugal (-2.1% mom), Ireland (-2.0% mom) and Latvia (-1.6% mom). Conversely, expansions were registered in Spain (+0.6% mom), Malta (+0.4% mom) and Belgium (+0.4% mom).
Regarding the region’s major economies, industrial production declined 0.9% in Germany and it fell 0.2% over the previous month in France. In Italy, industrial output decreased 1.1%.
Author: Ricardo Aceves, Senior Economist