Euro Area Industrial Production Rises Faster than Expected


Industrial production in the Euro Area increased by 3.3 percent year-on-year in September of 2017, beating market expectations of 3.2 percent but slowing from an upwardly revised 3.9 percent gain in August. Output rose less for intermediate, capital and nondurable goods and fell faster for energy. Among Eurozone's largest economies, industrial production slowed in Germany and Italy and fell in Ireland.

Year-on-year, production grew at a softer pace for most categories: Intermediate goods (4.6 percent compared to 5.3 percent in August); capital goods (4.5 percent compared to 5.1 percent) and non-durable consumer goods (1.5 percent compared to 2.5 percent), and output contracted for energy (-0.1 percent compared to -0.1 percent ). Meanwhile, production of durable consumer goods rose at a faster pace (6.9 percent compared to 3 percent).

In the EU28, industrial output advanced by 3.6 percent, following a 4.0 percent gain in August, driven by a softer increase of production of capital goods (4.9 percent compared to 5.7 percent in August); intermediate goods (4.7 percent compared to 5.3 percent); and non-durable consumer goods (1.6 percent compared to 2.4 percent), while production of energy shrank (-0.1 percent compared to 0.4 percent). On the other hand, durable consumer goods output rose at a faster rate (6.6 percent compared to 3.2 percent in August).

Among EU Member States for which data are available, the highest increases in industrial production were registered in Latvia (12.9 percent); Slovenia (8.6 percent); Hungary (8.0 percent); and Lithuania (7.7 percent). Also, output grew in Czech Republic (6.9 percent); Poland (6.8 percent); Germany (3.5 percent); France (3.2 percent) and Italy (2.4 percent). In contrast, a decrease was observed in Ireland (-3.1 percent). 

On a monthly basis, industrial output decreased 0.6 percent, in line with market expectations, due to a fall in production of capital goods (-1.6 percent), durable consumer goods, (-0.9 percent), energy (-0.9 percent) and intermediate goods (-0.6 percent). 

In the EU28, output contracted 0.5 percent, due to production of capital goods falling by 1.4 percent, energy by 0.6 durable, intermediate and non-durable consumer goods by 0.3 percent and durable consumer goods by 0.1 percent.

Among EU Member States for which data are available, the largest decreases in industrial production were registered in Portugal (-6.7 percent); Denmark (-3.7 percent); Germany (-1.8 percent) and Italy (-1.3 percent). The highest increases were recorded in the Netherlands (4.3 percent), Sweden (2.4 percent), Estonia (2.3 percent) and France (0.6 percent). 

Euro Area Industrial Production Rises Faster than Expected


Eurostat | Stefanie Moya | stefanie.moya@tradingeconomics.com
11/14/2017 10:54:40 AM