Eurozone: Industrial output drops in February

Industrial output contracted again in February, recording the third drop in four months amid soft incoming data for the Eurozone economy. Industrial production decreased a seasonally-adjusted 0.2% over the previous month, contrasting the revised 1.9% increase recorded in January (previously reported: +1.4% month-on-month). The result beat market expectations of a starker 0.6% contraction.

The deterioration was driven by falling energy production, partly due to a warm winter. In addition, production of intermediate, capital goods and durable consumer goods also fell. Looking at the individual economies for which data is available, 10 economies saw industrial production contract in February, including Germany and Spain.

On an annual basis, industrial production contracted 0.3%, a more moderate fall compared to January’s revised 0.7% contraction (previously reported: -1.1% year-on-year). Annual average growth in industrial production slumped to 0.4% in February, from January’s 0.6%.

Eurozone Industrial Production Forecast

FocusEconomics Consensus Forecast panelists see industrial production expanding 0.4% in 2019, which is unchanged from last month’s forecast. For 2020, panelists see industrial production growth at 1.1%.