Euro Area Industrial Production Picks Up in July

--EMU July Industrial Production 0.1% vs June -0.6% 

By Shaily Mittal

     LONDON (MNI) - Euro area industrial production expanded slightly in July,

rising by 0.1%, surpassing analysts' expectations of 'no' growth. 

Industrial production rose 0.1% on the month in July across the euro area,

following a fall of 0.6% in June, which had ended a run of three consecutive

months of growth. 

     The May data was stronger than previously estimated, being further revised

to 1.4% from 1.2% and 1.3% previously. The July data marks a soft start to Q3,

albeit a positive one, with production growth expected to pick-up in subsequent

months, as indicated by business surveys. 

     In the European Union (EU-28), production continued to contract, falling by

0.3% on the month in July from 0.6% in June (revised down from 0.5% previously).

This was the second month of contraction following May's solid growth of 1.4%

(revised upwards from 1.2% previously).

On an annual basis, production grew by 3.2% in July in EA-19, following an

upward revision of 2.8% in June from 2.6% previously. This marks the highest

reading since May when production grew by 4.1% (revised up from 4% previously). 

In July, on a monthly basis, EMU growth was predominantly led by the capital

sector, which rose 0.8% following a decline of 1.9%. 

     Production of durable consumer goods was up 0.7% following a contraction of

1.5% (revised down from -1.2%) while that for non-durable goods continued to

contract, down 0.4% on the month. Intermediate goods production grew by 0.5%

following a decline of 0.1% (revised up from -0.3% previously). In contrast,

energy production fell by 1.2%, making it the first month of contraction in four

months.

On a monthly basis, the largest increases in industrial production in the euro

area were recorded in Portugal (1.9%), Ireland (1.8%) and France (0.6%). Among

the largest nations in the euro area, Germany saw its second month of

contraction, with a decline in production by 0.1% on the month. 

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

Slovakia (9.2%), Latvia (8.9%) and Portugal (5.2%). Among the largest nations in

the euro area, Germany's growth increased to 3.9% from 2.4% in June (revised up

from 2.1% y/y previously). Growth in production in France rose to 3.6% y/y in

July from 2.5% in June, making it the third month of expansion. 

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

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