Eurozone: Industrial production in common-currency area contracts mildly
March 12, 2015
In January, industrial production fell a seasonally-adjusted 0.1% over the previous month. The reading contrasted both the revised 0.3% rise observed in December (previously reported: 0.0% month-on-month) and market expectations that had industrial output rising 0.2%.
The mild contraction observed in January reflected a contraction in the three Baltic economies (Estonia: -1.5% mom, Latvia: -3.1% mom, Lithuania: -2.3% mom). Other regional worst performers were Finland (-2.5% mom) and Luxembourg (-1.8% mom). On the other side of the spectrum, Malta (+6.1% mom) and the Netherlands (+1.4% mom) registered better results. Regarding the four major economies in the Eurozone, in France industrial production increased 0.4% in January, while in Germany industrial output growth was flat. In Spain, industrial production expanded 0.2% over the previous month, while in Italy it contracted 0.7%.
On an annual basis, industrial production accelerated from a revised 0.6% increase in December (previously reported: -0.2% year-on-year) to a 1.2% expansion in January. The reading represented the fastest year-on-year increase in six months. The trend remains subdued, with annual average growth in industrial production inching down from 0.7% in December to 0.6% in January.
Author: Ricardo Aceves, Senior Economist