Eurozone Industrial Output Growth Weaker than Expected


Industrial production in the Euro Area rose by 2.9 percent year-on-year in February 2018, following an upwardly revised 3.7 percent increase in the previous month and missing market expectations of 3.8 percent. Output growth slowed for intermediate, capital and consumer goods while energy production rebounded sharply.

Year-on-year, output growth slowed for: intermediate goods (2.9 percent vs 5.2 percent in January); capital goods (2.2 percent vs 8.8 percent); durable consumer goods (0.8 percent vs 4.9 percent); and non-durable consumer goods (2.4 percent vs 2.7 percent). Meanwhile, energy production surged 5.7 percent, rebounding from a sharp decline of 8.9 percent in the previous month.

In the EU28, industrial output went up 3.1 percent (vs 3.7 percent in January), as output increased at softer pace for: intermediate goods (3.1 percent vs 5.3 percent); capital goods (3.2 percent vs 8.6 percent); durable consumer goods (1.4 percent vs 5.1 percent); and non-durable consumer goods (2.2 percent vs 2.5 percent). By contrast, energy production advanced by 4.6 percent, recovering from a 6.5 percent fall in January.

Among Member States for which data are available, the highest increases in industrial production were registered in Latvia (8.7 percent), Poland (7.5 percent) and Slovenia (7.2 percent), and the largest decreases in Malta (-7.7 percent), Greece (-1.9 percent) and Bulgaria (-1 percent). 

On a monthly basis, output fell unexpectedly by 0.8 percent in February, missing market expectations of a 0.1 percent gain and following a downwardly revised 0.6 percent contraction in January. It was the steepest decline in industrial production since last June, as output fell for capital goods (-3.6 percent vs 0.6 percent), durable consumer goods (-2.1 percent vs -1.3 percent), intermediate goods (-0.8 percent vs -1.1 percent) and non-durable consumer goods (-0.5 percent vs 0.4 percent). By contrast, energy production jumped 6.8 percent after a 5.4 percent drop in the previous month.

In the EU28, output shrank 0.7 percent, following a decrease of 0.3 percent in January, due to falls in capital goods (-2.7 percent vs 0.9 percent), durable consumer goods (-1.6 percent vs -0.8 percent), intermediate goods (-1 percent vs -0.8 percent) and non-durable consumer goods (-0.4 percent vs flat reading). Production of energy, however, grew 5.1 percent (vs -2.8 percent in January).

Among Member States for which data are available, the largest decreases in industrial production were registered in Lithuania (-3.9 percent), Estonia (-2.7 percent), Malta and Portugal (both -2.3 percent), and the highest increases in Latvia and the Netherlands (both 3.9 percent), and Croatia (2.1 percent).


Eurozone Industrial Output Growth Weaker than Expected


Eurostat | Joana Ferreira | joana.ferreira@tradingeconomics.com
4/12/2018 9:39:07 AM