Eurozone Factory Output Falls for Second Straight Month in July

Industrial production in the Eurozone edged down beating the estimates for the second continuous month in July 2018 when compared to its previous month.

The continues fall in the output may be a signal for a possibility for an economic slowdown in the third quarter.

In July 2018 compared with June 2018, seasonally adjusted industrial production fell by 0.8 per cent in the euro area (EA19) and by 0.7 per cent in the EU28, according to estimates from Eurostat, the statistical office of the European Union released on Wednesday (12).

In June 2018, industrial production fell by 0.8 per cent in the euro area and by 0.5 per cent in the EU28. In July 2018 compared with July 2017, industrial production decreased by 0.1 per cent in the Euro area and increased by 0.8 per cent in the EU28.

The decrease of 0.8 per cent in industrial production in the euro area in July 2018, compared with June 2018, is due to production of durable consumer goods falling by 1.9 per cent, non-durable consumer goods by 1.3 per cent and intermediate goods by 0.8 per cent, while production of capital goods rose by 0.8 per cent and energy by 0.7 per cent.

In the EU28, the decrease of 0.7 per cent is due to the production of non-durable consumer goods falling by 1.3 per cent, durable consumer goods by 1.0 per cent and intermediate goods by 0.6 per cent, while production of energy rose by 0.7 per cent and capital goods by 0.6 per cent.

Among the Member States for which data are available, the largest decreases in industrial production were registered in Malta (-6.3 per cent), Croatia (-5.0 per cent) and Sweden (-4.1 per cent), and the highest increases in Denmark (+3.6 per cent), Ireland (+2.8 per cent) and Latvia (+1.8 per cent).

The decrease of 0.1 per cent in industrial production in the euro area in July 2018, compared with July 2017, is due to production of durable consumer goods falling by 2.3 per cent, energy by 2.1 per cent, non-durable consumer goods by 0.5 per cent and intermediate goods by 0.1 per cent, while production of capital goods rose by 1.4 per cent.