Eurozone industrial output unexpectedly fell in September as the demand for durable goods plunged.

The industrial production in the 16-nation euro area fell 0.9 percent in September compared with August, the Eurostat reported on Friday.

Markets had expected the industry output to rise by 0.5 percent in September.

The drop in industrial production was largely led by a 3 percent decline in durable goods production followed by capital goods and intermediate goods, which fell 1.3 percent each.

The production of non-durable goods and energy fell by 0.6 percent and 0.9 percent respectively, reflecting an output decline in almost every segment of the industry.

While Ireland showed the largest increase in industrial output at 7.9 percent in September in Eurozone, Malta saw the highest decrease of 5.6 percent.

Industrial output in Germany, the largest economy in Eurozone, also fell by 0.8 percent in September recording the sharpest fall in 17 months. New factory orders in Germany fell 4 percent in September due to weak demand for capital goods.

However, industrial production in Eurozone increased 5.2 percent in September compared with the same month last year.