Euro Area Posts Larger-Than-Expected Drop in Industrial Output
(MENAFN) Industrial production in the eurozone experienced a sharp decline of 1.3% in June, a larger-than-expected drop that signals widespread weakness across several key sectors, as reported by Eurostat on Thursday.
Economists had predicted a more modest monthly decrease of 0.9%.
The most significant contraction occurred in the production of non-durable consumer goods, which plummeted by 4.7%. Other major categories also saw declines: capital goods dropped by 2.2%, durable consumer goods fell 0.6%, and intermediate goods saw a slight dip of 0.2%.
In contrast, the production of energy goods increased by 2.9% during the same period.
Across the wider EU27, industrial output dropped by 1% in June compared to May, with notable regional disparities. The steepest declines were seen in Ireland (-11.3%), Portugal (-3.6%), and Lithuania (-2.8%). On the other hand, Belgium saw a notable gain of 5.1%, while France and Sweden both recorded increases of 3.8%.
Year-over-year, industrial production in the eurozone and the EU grew modestly by 0.2% and 0.5%, respectively, in June. The eurozone’s production of non-durable consumer goods showed the strongest annual growth at 5.8%, while durable consumer goods suffered a 4% decline.
Annual industrial output gains were particularly pronounced in Sweden (+13.4%), Ireland (+10.5%), and Latvia (+7.3%), while the largest decreases were reported in Bulgaria (-8.2%), Hungary (-4.9%), and Slovenia (-4.3%).
The term "eurozone" refers to the group of EU member states that use the euro, while the EU27 encompasses all EU countries.
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