Euro Area Industrial Production Contracts in June

--EMU June Industrial Production -0.6% vs May rev -0.1%

By Shaily Mittal

     LONDON (MNI) - Euro area industrial production eased in June, falling 0.6%

on month, following three months of growth. The decline was in line with

analysts' expectations 

     Industrial production fell by 0.6% on the month in June in the euro area

following a rise of 1.2% in May (revised down from a rise of 1.3% previously).

Industrial production contracted for the first time since February when it fell

by 0.2% on the month and places Q2 production on a stronger pedestal than Q1.

Across the whole European Union (EU-28), production fell by 0.5% on the month in

June from 1.2% in May.

     On an annual basis, production eased to 2.6% in June compared to a year ago

in EA-19, after a slight downward revision of 3.9% in May from 4% previously.

Despite the fall, industrial production remains at a relatively strong footing

and as also indicated by other business surveys, it supports the recovery in the

economies of the Eurozone.

     In June, on a monthly basis, EMU production deceleration was predominantly

led by the capital sector, which fell by 1.9% following a growth of 2.2%

(revised down from 2.3% previously). Production of durable consumer goods was

down by 1.2% while that for non-durable goods was down by 0.4%. Intermediate

goods production fell by 0.3% following four months of growth. In contrast,

energy production grew by 1.8% on the month, marking third month of growth.

     On a monthly basis, the largest declines in industrial production in the

EA-19 were recorded in Ireland (-7.5%), Malta (-3.2%), with France and Finland

(both at -1.2%). Among the largest nations in the euro area, Germany saw a fall

in production by 1.1%, marking the first monthly decline in 2017.

     On an annual basis, industrial production fell by the fastest pace in EA-19

in Ireland (-8.1%) and Malta (-1.3%). Among the largest nations in the euro

area, Germany's growth eased to 2.1% from 4.7% in the previous month (revised

down from 4.8% y/y in May previously). Growth in production in France fell to

2.5% y/y in June from 3.3% (revised down from 3.4% in May previously), marking

the fourth month of expansion. 

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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