Eurozone Industrial Output Contracts the Most in 9 Years


Industrial production in the Euro Area slumped 4.2 percent from a year earlier in December 2018, following a downwardly revised 3 percent contraction in the previous month and compared to market expectations of 3.2 percent drop. It was the steepest decline in industrial production since November 2009 as output fell for all categories.

Production of capital goods posted the biggest decrease (-5.5 percent vs -4.4 percent in November), followed by durable consumer goods (-4.4 percent vs -3.6 percent), enery (-4.2 percent vs -4 percent), intermediate goods (-4 percent vs -3.1 percent) and non-durable consumer goods (-1.8 percent vs 0.9 percent).

Among Eurozone's largest economies, Spain's industrial output contracted the most (-6.7 percent vs -3.2 percent), followed by Italy (-5.5 percent vs -2.6 percent), Germany (-3.9 percent vs -4.5 percent) and France (-1.7 percent vs -2 percent).

In the EU28, industrial production shrank 2.7 percent percent in December (vs -1.9 percent in November) as output contracted for all categories: capital goods (-4.2 percent vs -2.9 percent); intermediate goods (-3.2 percent vs -2.3 percent); durable consumer goods (-2.9 percent vs -1.4 percent); energy (-1.5 percent vs -3.2 percent); and non-durable consumer goods (-0.2 percent vs 1.2 percent).

On a monthly basis, industrial output fell 0.9 percent in December (vs -1.7 percent in November), worse than market expectations of a 0.4 percent drop. Output shrank for capital goods (-1.5 percent vs -2.7 percent), non-durable consumer goods (-1.5 percent vs -0.4 percent) and energy (-0.4 percent vs 0.2 percent). On the other hand, production of durable consumer goods rose 0.7 percent (vs -1.8 percent in November) while that of intermediate goods was unchanged (vs -1.2 percent in November).

The biggest output declines were seen in Spain (-1.4 percent vs -1.9 percent) and Italy (-0.8 percent vs -1.7 percent), while production increased in France (0.8 percent vs -1.4 percent) and Germany (0.2 percent vs -1.4 percent).

In the EU28, output went down 0.5 percent in December (vs -1.2 percent in November) due to production of capital goods (-1.2 percent vs -2 percent) and non-durable consumer goods (-0.2 percent, the same as in November). Meanwhile, intermediate goods production was flat (vs -1.1 percent in November), while output growth was recorded for both energy (0.4 percent vs -0.1 percent) and durable consumer goods (0.1 percent vs -1.2 percent).

Eurozone Industrial Output Contracts the Most in 9 Years


Eurostat | Joana Ferreira | joana.ferreira@tradingeconomics.com
2/13/2019 11:30:25 AM