Drop in Eurozone industrial production points to lack of momentum in the economic growth
Industrial production in the Eurozone took a breather in August as it failed to add momentum to its lacklustre recovery.
Industrial production – which includes manufacturing, mining and energy production – dropped 0.5 per cent in August compared with July, according to data published by European statistical office Eurostat this morning.
Of the big four Eurozone economies, industrial production declined in Germany, Italy and Spain but rose in France on the month.
The figures show the Eurozone economy is still struggling to gain traction after marginally avoiding a triple-dip recession last year.
On the same month last year production was up 0.9 per cent with Ireland leading the way with 15 per cent growth. The sharpest decline was in the Netherlands where it contracted 8.9 per cent.
Economist Edoardo Campanella from Italian bank UniCredit said the outlook for production was bright despite the monthly dip:
Looking ahead, business sentiment indicators in September are consistent with ongoing moderate expansion in industrial activity even in the wake of sluggish global trade and growing uncertainty stemming from emerging markets. The main supportive factors remain a good recovery in domestic demand, cheap energy prices and past euro depreciation.
Campanella also said figures for October (which will be published in two months time) would give the first indication of the impact of the Volkswagen emissions scandal on industrial production.