Eurozone: Eurozone industrial production weakens in May
July 14, 2015
Industrial production in the Eurozone in May decreased 0.4% over the previous month. The contraction took the markets by surprise as they had expected a 0.2% increase. May’s result came in below the revised flat reading observed in April (previously reported: +0.1% month-on-month) and represents the second contraction so far this year. Compared to the same month last year, industrial production accelerated from a 0.9% rise in April to a 1.6% increase in May.
According to Eurostat, the monthly contraction mainly reflected a decrease in electricity output (-3.2% mom) as well as in the production of non-durable goods (-1.4% mom).
At a country level, the decrease was led by a contraction in Ireland (-6.9% mom), the Netherlands (-5.7% mom) and Greece (-5.1% mom). Conversely, notable expansions were registered in Lithuania (+1.7% mom) and Portugal (+1.0% mom).
Regarding the region’s four major economies, industrial production was flat in Germany and it increased 0.3% over the previous month in France. In Italy and Spain, industrial production expanded 0.9% and 0.4%, respectively.
Author: Ricardo Aceves, Senior Economist