Euro Zone Industrial Production Drops Below Expectations In August, While EU Nations Post Mixed Data

  @AmruthaGayathri on September 12 2013 6:29 AM
Milan factory worker
A worker welds in a factory in Gravellona Lomellina, 45km (27 miles) southwest of Milan on June 11, 2013. Reuters

Industrial production in the 17-member euro zone in July declined, while in the 28-nation European Union, or EU, industrial production fell significantly behind expectations on a monthly basis, as a dozen nations posted a decline while 10 saw an increase.

Industrial production in the euro zone fell by 1.5 percent in July on a monthly basis, after an increase of 0.6 percent in the previous month. Analysts had predicted no change in the monthly industrial output. Year-on-year, industrial production declined by 2.1 percent, data from Eurostat showed. The fall was attributed to reduced production of capital goods as well as consumer goods.

In the EU, industrial production dropped by 1.0 percent in July, after an increase of 0.9 percent in June. Annually, industrial output declined by 1.7 percent in the EU.

The largest decreases in industrial output were registered in Ireland (-8.7 percent), Malta (-6.7 percent), Portugal (-3.2 percent), Greece (-2.8 percent) and Germany (-2.3 percent), and the highest increases were seen in Lithuania (3.3 percent), Denmark (2.3 percent), Estonia (2.1 percent) and Finland (2.0 percent).

On a yearly basis, the largest decreases were seen in Greece (-8.2 percent), Ireland (-7.9 percent), Malta (-7.7 percent) and Sweden (-6.2 percent), and the highest increases were in Estonia (7.8 percent), Romania (7.3 percent) and Poland (3.8 percent).

France’s consumer price index, or CPI, undershot expectations to rise 0.5 percent in August, after a decrease by 0.3 percent in the previous month, due to an increase in the prices of manufactured products as well as a rebound in energy prices and increase in tobacco prices.

On a year-on-year basis, the CPI was up 0.9 percent in August, lower than a yearly growth of 1.1 percent in July 2013 and analysts’ consensus of 1.1 percent. Excluding tobacco, the CPI grew 0.4 percent in August, compared to July 2013, and 0.7 percent compared to the corresponding period in 2012.

Italy’s industrial production in July decreased 1.1 percent compared to the previous month, while analysts had predicted a growth of 0.3 percent. On a yearly basis, industrial production decreased by 4.3 percent, compared to a decline of 2.1 percent in June.

Italy’s CPI grew 0.4 percent in August month-on-month, after a 0.3 percent increase in July, while on a yearly basis the index grew 1.2 percent, compared to 1.1 percent growth in the previous month. Analysts had predicted a monthly increase of 0.3 percent and a yearly increase of 1.1 percent.

Spain’s CPI grew 0.3 percent in August on a monthly basis, after a decline of 0.5 percent in July. Year-on-year the growth was 1.5 percent, compared to 1.8 percent yearly growth in July.

Unemployment in Greece on a monthly basis was 27.9 percent in June, compared to 27.6 percent in May. In Germany, the wholesale trade index was down 1.7 percent in August on a yearly basis. Compared to July, the index fell by 0.6 percent.

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