Eurozone: Industrial production plunges in August
October 14, 2014
In August, industrial production dropped a seasonally-adjusted 1.8% over the previous month, according to data released by Eurostat on 14 October. The contraction—which contrasted a 0.9% expansion in July—exceeded the 1.6% drop market analysts had expected. The August reading—which marked the fourth contraction in the last three months and the largest drop since September 2012—paints a grim picture for Eurozone economic activity in the third quarter.
At a country level, Germany (-4.3% month-on-month) and Slovenia (-2.3% mom) were the region’s worst performers. At the other end of the spectrum, Portugal (+3.1% mom) and Netherlands (+1.3% mom) recorded the best results. In the remaining three major regional economies, output expanded in Italy (+0.3% mom) and Spain (+0.1% mom), whereas it contracted in France (-0.1% mom).
On an annual basis, industrial production dropped 1.9%, which contrasted the 1.6% expansion recorded in July. The reading represented the largest drop since February of last year. Meanwhile, annual average growth in industrial production was stable at July’s 1.0%.
Author: Armando Ciccarelli, Head of Data Solutions