The industrial production in the Eurozone decreased by 0.8% mom in September, which is a better result than expected contraction of 0.9%, according to seasonally adjusted data of Eurostat. In the European Union the decline amounted to 0.7%. During August in the Eurozone and the EU were recorded increases of 1,8% and 1,6%. On year-on-year basis in September in both regions was reported growth of 1.2% in industrial production.
About declines on a monthly basis, the greatest fault is the decrease in the production of durable consumer goods (5.6% in the Eurozone and 3.7% in the European Union).
The biggest decline was reported in Denmark (-8.1%), while the largest increase in Sweden (+7.6%).
Increases on year-on-year basis are due to growth rates in the production of durable consumer goods in the Eurozone (+ 1.9%) and in the EU due to the growth in the production of intermediate goods (+1.6%).
The industrial production has been very volatile this year, with most monthly gains offset by losses in the month after. With political uncertainty hampering investments and real incomes falling as inflation is picking back up at the moment, the question is whether volatility and sluggish growth will continue to plague Eurozone industry in the winter months.
The PMI for manufacturing surged in October as businesses indicated that production, new orders and employment growth in the sector accelerated and new orders are now somewhat higher than in the beginning of 2016. This means that the outlook for industrial output is cautiously brighter for the end of the year, but no miracles can be expected in the current uncertain economic environment.
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