Euro zone September industry output falls less than expected

Euro zone industrial production fell by less than expected in September, driven down mostly by a steep drop in the output of durable goods, such as cars and fridges, the European Union statistics office said on Monday.

Eurostat said industrial production in the 19-member single currency bloc in September decreased by 0.8 per cent during the month, although was 1.2 per cent higher year-on-year.

A Reuters poll of economists had forecast a steeper monthly fall of 1.0 per cent, and a more moderate 1.0 per cent increase from a year earlier.

The monthly drop in September follows an upwardly revised surge in industrial production in August of 1.8 per cent. Eurostat also upwardly revised its earlier estimates for the year-on-year output change in August to 2.2 per cent. Those compared with the originally reported figures of 1.6 and 1.8 per cent respectively.

Ups and downs

Euro zone output continued a seven-month pattern in which increases in one month are followed by declines the following month.

The monthly fall of production in September was mostly due to a 5.6 per cent drop in the output of durable consumer goods, such as cars and fridges, which more than erased the 4.8 per cent rise recorded in August.

In a sign of lower appetite for investment, production of capital goods, such as industrial machinery, went down by 2.2 per cent on the month, after a steep increase of 4.2 per cent in August.

Output decreased also for energy (-0.2 per cent) and intermediate goods (-0.7 per cent), while it increased by 0.3 per cent for non-durable consumer goods, such as clothes.

– Reuters