Eurozone Industrial Output Rises Less Than Expected in June


Industrial production in the Euro Area increased by 2.6 percent year-on-year in June 2017, following a downwardly revised 3.9 percent gain in May and missing market expectations of 2.8 percent. Output rose at a slower pace for consumer, capital and intermediate goods.

Year-on-year, production grew at a slower pace for most categories: Durable consumer goods (4 percent from 7.1 percent in May); non-durable consumer goods (0.6 percent from 2.7 percent); capital goods (1.6 percent from 5.4 percent); and intermediate goods (3.8 percent from 3.9 percent). Meanwhile, energy production went up sharply by 5.1 percent after an increase of 1 percent in May.

In the EU28, industrial output advanced by 2.9 percent, after rising by 3.9 percent in the previous month, as production growth eased for durable consumer goods (4.2 percent from 6.6 percent in May); capital goods (2.4 percent from 6.1 percent); intermediate goods (3.9 percent from 4.9 percent); and non-durable consumer goods (1.5 percent from 2.5 percent). On the other hand, energy output rose further (3.7 percent from 0.4 percent in May).

Among EU Member States for which data are available, the highest increases in industrial production were registered in Estonia (14.5 percent), Romania (11.5 percent) and Sweden (8.9 percent). Also, output grew in Germany (2.1 percent), France (2.5 percent), Spain (3.2 percent) and Italy (5.3 percent). In contrast, decreases were observed in Ireland (-8.1 percent) and Malta (-1.3 percent).

On a monthly basis, industrial output declined 0.6 percent, worse than market expectations of a 0.5 percent drop, dragged by lower production of capital goods (-1.9 percent), durable consumer goods (-1.2 percent), non-durable consumer goods (-0.4 percent) and intermediate goods (-0.3 percent). By contrast, energy output jumped 1.8 percent.

In the EU28, the decrease of 0.5 percent is due to production of capital goods falling by 1.5 percent, durable consumer goods by 0.8 percent, intermediate goods by 0.4 percent and non-durable consumer goods by 0.3 percent, while production of energy rose 1.4 percent. 

Among EU Member States for which data are available, the largest decreases in industrial production were registered in Ireland (-7.5 percent), the Czech Republic (-3.8 percent) and Malta (-3.2 percent). Also, output fell in Germany (-1.1 percent) and France (-1.2 percent). The highest increases were recorded in Luxembourg (3.4 percent), Estonia, Croatia and the Netherlands (all 1.2 percent).

Eurostat | Joana Ferreira | joana.ferreira@tradingeconomics.com
8/14/2017 9:20:50 AM