Eurozone: Industrial output marks largest drop since July 2012
February 12, 2014
In December, industrial production contracted a seasonally-adjusted 0.7% over the previous month according to data released by Eurostat on 12 February. The reading contrasted the 1.6% increase recorded in November and exceeded the 0.3% drop the market had expected. In addition, the December outturn represented the largest drop since July 2012.
At a country level, Slovenia (+2.7% month-on-month) and Greece (+2.6% mom) were the region's best performers. At the other end of the spectrum, Estonia (-5.7% mom) and Netherlands (-2.6% mom) recorded the worst results. Industrial output contracted in all the four major regional economies (Spain: -0.2% mom; France: -0.3% mom; Germany: -0.7% mom; Italy: -0.9% mom).
On an annual basis, industrial production expanded 0.5%, which was down from the 2.8% expansion registered in November, but marked the fourth consecutive positive reading. In the full year 2013, industrial production contracted 0.8%, which more than halved the 2.5% drop recorded in 2012.
FocusEconomics Consensus Forecast panelists see industrial production contracting 1.9% in 2014, which is up 0.1 percentage points from last month's forecast. For 2015, panelists see industrial production rebounding to a 2.6% expansion.
Author: Armando Ciccarelli, Head of Data Solutions