Industrial Production Disappoints With Weakness Driven by Ireland

Eurozone industrial production disappointed in June at -0.1% M/M in-line with MNI's tracking (vs 0.5% consensus, -0.9% revised prior from -0.6%). The annual reading was also weak printing -3.9% Y/Y (vs -2.7% consensus, -3.3% prior revised from -2.9%).

• The June monthly fall was driven by Ireland, which saw production fall 7.8% M/M after rising 5.4% M/M last month - making it the largest decline since January 2024, followed by Belgium which saw its steepest sequential deterioration since April 2023 printing -6.5% M/M.
• Of the 6 major eurozone members, Germany followed by France and Italy restrained the downside move. Germany industrial production rose 1.6% M/M (contributing around 0.6ppts to industrial production), while France and Italy edged up 0.7% and 0.5%.
• From a sectoral perspective, 3 of 5 sub-components fell. Intermediate goods fell again albeit at a slower pace of 1.5% M/M (vs -3.3% in May). Capital goods also declined 7.8% (vs -7.3% prior) - the steepest fall since February 2024, whilst durable goods edged down 2.1% (vs -5.0% last month).
• Meanwhile, energy production rose for the second consecutive month by 2.6% M/M (vs 0.5% prior) and non-durable consumer goods remained stable rising 0.1% M/M (vs 2.4% prior).