MNI DATA ANALYSIS: Euro Area Industrial Production Up In Aug

--EMU August Industrial Production 1.4% vs July revised 0.3%

By Shaily Mittal

     BRUSSELS (MNI) - Euro area industrial production expanded in August, rising

by 1.4% m/m, surpassing analysts' expectations of 0.7% growth.

     Industrial production rose 1.4% on the month in August across the euro

area, following a rise of 0.3% in July (revised upwards from 0.1% previously),

making it the second consecutive month of growth. 

     The August data lifts the two-month average to 0.9%, providing a robust

base to Q3. The strength in the production data is in line with the PMI and

business surveys and if this trend continues it could help boost Euro area

economic growth.

     In the European Union (EU-28), production expanded as well, rising by 1.7%

on the month in August following two months of contraction.

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

capital sector, which rose 3.1% following a rise of 0.9% (revised up from 0.8%)

previously. Production of durable consumer goods was up 1.3% following growth of

1.5% in July (revised up from 0.7% previously). Non-durable goods did not grow

at all following 0.5% growth in July. 

     Intermediate goods production grew by 1.2% following a rise of 0.7%

(revised up from 0.5%) previously. Energy production rose by 0.2% following a

decline of 1.6% in the previous month (revised down from -1.2%).

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

euro area were recorded in Malta (5.4%), Portugal (4.7%) and Lithuania (3.2%).

Among the largest nations in the euro area, Germany saw production growth of 3%

following two months of contraction while production in France contracted by

0.4%. 

     On an annual basis, production grew by 3.8% in August across the eurozone,

following an upward revision of 3.6% in July from 3.2% previously. This marks

the highest reading since May when production grew by 4.1%.

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

in Lithuania (13.1%), Latvia (12.1%) and Portugal (8.7%). Among the largest

nations in the euro area, Germany's growth increased to 4.7% from 4.1% in July

(revised from 3.9% previously). Growth in production in France slowed to 1.3% in

August from 3.7% in July (revised down from 3.6% y/y previously), making it the

fourth month of expansion. 

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

[TOPICS: M$X$$$]