Eurozone: Industrial production surges in January
March 14, 2016
The industrial sector in the common-currency bloc started the year on a strong footing as industrial production in January jumped a seasonally-adjusted 2.1% over the previous month. The reading contrasted the 0.5% decrease observed in December and overshot the 1.7% rise the markets had expected. January’s result marked the fastest expansion since September 2009.
January’s strong increase stemmed mainly from a notable expansion in the production of capital goods. Strong growth was also registered in other industries, namely in energy, as well as in non-durable consumer goods and durable consumer goods production. Over the same month last year, industrial production soared 2.8% in January (December: -0.1% year-on-year), which represented the fastest increase since August 2011.
Among the Euro area economies, for which data are available, the expansion was driven by a notable increase in Ireland (+12.7% month-on-month) as well as due to expansions in Estonia (+4.9% mom) and Slovenia (+4.4% mom). Among the region’s major economies, industrial output rebounded and expanded strongly in France, Germany and Italy. Conversely, output decreased in Spain.
Author: Ricardo Aceves, Senior Economist