Industrial production in the Euro Area shrank 0.3 percent month-over-month in September of 2018, following an upwardly revised 1.1 percent rise in August and compared to market expectations of a 0.4 percent drop. Output declined for intermediate goods (-0.3 percent compared to 0.5 percent in August); energy (-1.7 percent compared to 1.8 percent), durables (-0.7 percent compared to 1.6 percent) and nondurables (-1.3 percent compared to 2 percent). On the other hand, production edged up 0.3 percent for capital goods (1.7 percent in August). Year-on-year, production rose 0.9 percent, below 1.1 percent in September and beating market forecasts of a 0.3 percent gain. Industrial Production Mom in the Euro Area averaged 0.09 percent from 1990 until 2018, reaching an all time high of 3.20 percent in January of 2016 and a record low of -4 percent in November of 2008.
Industrial Production Mom in Euro Area is expected to be 0.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Industrial Production Mom in Euro Area to stand at -0.60 in 12 months time. In the long-term, the Euro Area Industrial Production MoM is projected to trend around 0.30 percent in 2020, according to our econometric models.