Eurozone Industrial Output Continues to Contract

In November, industrial output in the eurozone contracted for the third consecutive month, indicating a ongoing downturn in the sector. According to data published by European Union statistics agency Eurostat, total production declined by 0.3% compared to the previous month. This decline follows a 0.7% drop recorded in October and was in line with economists’ expectations.

The decline in industrial output was primarily driven by a 2.0% fall in durable consumer goods. Intermediate goods also saw a decline of 0.6%, while capital goods experienced a sharper decline of 0.8%. On a positive note, energy production witnessed a rise in output with an increase of 0.9%.

Despite the challenging situation, there are indications that the industrial sector in the eurozone may be reaching its bottom. Recent surveys of purchasing manufacturers have shown an improvement in sentiment within the manufacturing industry during December.

Analyzing the larger eurozone nations, Germany experienced a 0.3% decrease in output on a monthly basis, while Italy saw a larger decline of 1.5%. On the other hand, France recorded a modest growth of 0.5% and Spain saw a more significant expansion of 1.1%.

It remains to be seen how the industrial sector in the eurozone will evolve in the coming months and whether the recent signs of improvement will continue.