Euro industrial output up in August, but sharply down year-on-year

A worker stands next to a machine cutting newly manufactured bars of steel at the United Cast Bar Group’s foundry in Chesterfield, Britain, April 12, 2022. Picture taken April 12, 2022. REUTERS/Phil Noble/File photo

BRUSSELS  – Euro zone industrial production rose by more than expected in August, data showed on Friday, as factories made more consumer goods although overall output was down by more than 5 percent from a year earlier.

The European Union’s statistics office Eurostat said industrial production in the 20 countries sharing the euro rose by 0.6 percent month-on-month in August for a 5.1-percent year-on-year decline.

Economists polled by Reuters had expected a 0.1-percent monthly increase and a 3.5-percent decline from a year earlier.

The stronger than expected month-on-month numbers resulted from a 1.2-percent rebound in production of durable consumer goods, such as televisions or fridges, after a similar-sized decline in July.

Non-durable consumer goods

Output of non-durable consumer goods, such as food or clothing, rose by 0.5 percent for a second consecutive month. Capital goods output ticked up by 0.3 percent after a sharp fall in July. Production of energy and intermediate goods, such as steel or glass, declined.

Compared with a year earlier, all types of production were some 5-7 percent lower, except for non-durable consumer goods, whose decline was 1.4 percent.

The earlier this week to 0.7 percent in 2023 and 1.2 percent in 2024, from July forecasts of 0.9 percent and 1.5 percent. expressing concerns about geopolitical fragmentation and a resurgence of inflation.