Eurozone: Industrial output contracts for second consecutive month in December
February 13, 2019
Industrial output fell again in December, contracting a seasonally-adjusted 0.9% over the previous month. The result followed November’s stark 1.7% decrease and undershot market expectations of a softer 0.4% drop. Industrial production figures have been notably weak since Q3 2018, fueling a broader downturn in the Eurozone economy.
The contraction was driven by shrinking production of capital good and non-durable consumer goods. In addition, energy output all fell mildly, while production of intermediate goods was flat in December.
Looking at the individual economies for which data is available, 9 economies saw industrial production drop in December, including Italy and Spain. However, industrial production rebounded in France and Germany.
On an annual basis, industrial production contracted 4.2%--the worst reading since November 2012. In 2018, industrial production grew 1.1%, a stark deceleration from 2017’s 3.0%.
Eurozone Industrial Production Forecast
FocusEconomics Consensus Forecast panelists see industrial production expanding 1.3% in 2019, which is unchanged from last month’s forecast. For 2020, panelists see industrial production growth at 1.4%.