Industrial production shrinks in August

Latest reading: Industrial production declined 1.2% in seasonally adjusted month-on-month terms in August, following a 0.5% increase in the previous month. Relative to the prior month's figures, readings in August worsened for intermediate goods (-0.2% on a seasonally adjusted month-on-month basis vs +0.5% in July), capital goods (-2.2% vs +1.7% in July), non-durable consumer goods (+0.1% vs +1.8% in July) and durable consumer goods (-1.6% vs +1.2% in July). In contrast, the reading for energy improved in August (-0.6% vs -1.7% in July). Looking at specific countries, output fell in Germany, Italy, France and Spain, and it rose in the Netherlands. On a year-on-year basis, industrial production was up 1.1% in August, following a 2.0% increase in the prior month.

Panelist insight: Commenting on the outlook, ING’s Bert Colijn stated: “Sizeable eurozone investment plans will take time to materialise, which means that while optimism about the medium-term outlook for the eurozone industry has become brighter, there is no immediate reason for short-term optimism as trade with the US settles into a new regime. For the third quarter, this means that manufacturing is unlikely to have contributed positively to GDP growth, keeping expectations for growth very muted.”

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