Eurozone Industrial Production Grows Further

Eurozone industrial production grew at a slightly faster than expected pace in July, as the economy attempts to sustain its recovery from the slump caused by the coronavirus, or Covid-19, pandemic. Industrial production rose 4.1 percent from June, when it grew 9.5 percent, which was revised from 9.1 percent reported initially, preliminary data from Eurostat showed on Monday. Production gained for a third straight month. Economists had forecast a 4 percent increase. Production growth continued to be driven by the manufacture of capital goods, which rose 5.3 percent. Durable consumer goods production grew 4.7 percent and output of intermediate goods increased 4.2 percent. Manufacture of non-durable consumer goods increased 3.9 percent and energy output rose 1.1 percent.

Compared to the same month last year, industrial production fell 7.7 percent in July after a 12 percent slump in June, revised from 12.3 percent. Economists had expected an 8.2 percent decline. Output had been decreasing in double-digits since March. In the EU, industrial production grew 4.1 percent month-on-month after a 9.6 percent increase in the previous month. On a year-on-year basis, production decreased 7.3 percent following an 11.3 percent slump in June. Among the member states, the biggest monthly increases were registered in Portugal, Spain and Ireland, while the worst falls were observed in Denmark, Latvia and Belgium.