Eurozone: Industrial output rebounds in August
October 14, 2019
Industrial output returned to growth in August, contrasting two months of contractions. Industrial production rose a seasonally-adjusted 0.4% over the previous month, contrasting July’s 0.4% decrease. August’s result overshot market expectations of a 0.3% increase.
A rebound in production of intermediate goods production and an improvement in non-durable consumer goods output helped drive August’s turnaround. Meanwhile, capital goods production also grew solidly in the month, while energy output contracted.
Looking at the individual economies for which data is available, 8 economies saw industrial production expand in August, including Germany, Italy and Spain.
On an annual basis, industrial production plunged 2.8% in August, the worst reading since December 2018 (July: -2.1% year-on-year). Accordingly, annual average variation in industrial production slumped to minus 1.3%, the worst reading since October 2013 (July: -1.0%).