Eurozone: Eurozone industrial production rebounds after two contractions
September 14, 2015
Industrial production in the Eurozone rebounded strongly in July, recovering from the contractions registered in the previous two months. Output expanded 0.6% over the previous month on a seasonally-adjusted basis. The increase contrasted the revised 0.3% contraction registered in June (previously reported: -0.4% month-on-month) and overshot the 0.3% increase the markets had expected. Compared to the same month last year, industrial output grew 1.9% in July, which was up from the revised 1.5% rise seen in June (previously reported: +1.2% year-on-year).
In a statement, Eurostat pointed out that the monthly rebound was due to a sharp increase in electricity production and manufacturing of capital goods, as well as of consumer goods. Conversely, production of intermediate and non-durable goods decreased compared to the previous month.
Among the Euro area economies, for which data are available, the increase was driven by expansions in Ireland (+7.2% mom), Greece (+4.3% mom), and Latvia (+2.8% mom). On the other side of the range, Estonia, Malta and Finland contracted over the previous month.
Among the region’s major economies, industrial production increased 0.5% in Germany and it fell 0.8% in France. In Italy, industrial output surged 1.1% and in Spain production expanded 0.6%.
Author: Ricardo Aceves, Senior Economist