EZ Industrial Production Extends Recovery

EZ IP: +9.1% m/m, -12.3% y/y (vs. cons +10.0% m/m, -11.6% y/y); Prev (May): 12.3% m/m, -20.4% y/y

• The EZ industrial sector saw another strong uptick in Jun, rising 9.1%, although coming in slightly below expectations.
• Annual output declined again, although at a slower pace of 12.3%.
• All sectors revealed monthly gains with durable consumer goods (+20.2%) showing the largest uptick, followed by capital goods (+14.2%).
• Intermediate goods output rose 6.7%, while non-durable consumer goods edged up 4.8% and energy production increased by 2.6%.
• Among the member states, Slovakia (+21.7%), Spain (14.5%) and France (12.9%) posted the biggest gains, while Belgium (-1.4%) and Finland (-0.8%) saw the only m/m declines.
• The largest annual drops were recorded in Portugal (-14.8%), Germany and Spain (both -14.1%), while Ireland (+4.5%) was the only country to register an uptick compared to the previous year.
• The easing of the Covid-19 related containment measures led to another month of strong growth for IP, however, demand remains subdued as several countries are seeing rising cases, posing a downside risk in the coming months.