Euro zone industry output declines, showing fading overall growth

  12 May 2016    Read: 730
Euro zone industry output declines, showing fading overall growth
Euro zone industrial production fell for a second straight month in March, depressed by every sector except energy, the European Union statistics office said on Thursday.
The figures imply that the bloc`s overall economic growth, which hit a five-year high of 0.6 percent in the first quarter, tailed off after a very strong opening month.

Industrial production in the 19-member single currency bloc was 0.8 percent lower in March than in February, against the average forecast in a poll of economists of no change.

Year-on-year, euro zone industrial production rose by 0.2 percent, below the average market expectation of a 1.1 percent increase.

Eurostat also revised down the monthly output figure for February to -1.2 from -0.8 percent, although the year-on-year number went up to a gain of 1.0 from 0.8 percent.

Euro zone March monthly output decreased mostly because of a sharp fall of production of non-durable goods. Production of durable consumer goods, such as fridges, decreased by 0.4 percent and of capital goods, such a machinery, declined by 1.1 percent.

Output of intermediate goods was 0.8 percent lower.

Energy was the only sector with higher production, rising 2.0 percent.

The two largest economies of the euro zone saw a drop in their monthly output, in Germany by 1.0 percent, France 0.3 percent. Italian industrial production was unchanged.

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