Industrial production fell 0.4% in May in the euro area after being steady in April (revised), according to data released Tuesday by the European Statistical Office Eurostat.
This was due mainly to a 3.2% drop in energy production and 1.4% for the non-durable consumer goods, Eurostat said.
The production of intermediate goods, however, increased by 0.1%, that of durable consumer goods by 0.4% and the 1.0% investment properties.
countries, the largest declines were recorded by Ireland (-6.9%), Greece (-5.1%) and the Netherlands (-5.7%). Industrial production in Portugal rose however by 1% and 1.7% in Lithuania wins.
For many analysts, the decline in industrial production could signal a slowdown in economic recovery in the euro area.
“The low figures for industrial production in May, and the decline of the German ZEW index (which measures the confidence of financial professionals in the German economy) in July suggests that the fragile recovery in the euro area could be slowing down, “say analysts at Capital Economics.
The decline in industrial production in May” challenges the hopes that growth in the second quarter reaches 0.4%, as in the first quarter “, also notices the institute IHS Global Insight in a note.
Reach in particular private consumption, growth in the euro area reached 0.4% earlier this year. It was already established at 0.4% in the fourth quarter 2014.
In one year, industrial production grew 1.6% in the euro area, driven primarily by property sectors sustainable consumption (4.8%) and capital goods (4.1%).
In all 28 countries of the European Union, it increased by 2% year on year but fell 0.3% in May.
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