Eurostat: Industrial Output Declines Sharply in the Eurozone
Industrial production among eurozone economies declined this July according to Eurostat, Reuters reports. In a development largely unanticipated by economists, industrial production fell 1.5 percent in the eurozone during the month of July. Most analysts had predicted a modest gain of around 0.1 percent, which would be on track with the trend of a steady increase in industrial production that has occurred so far this year. After a sharp decline during the brunt of the recession in 2009, levels recovered only to enter into a slow decline before turning that around with consecutive gains in 2013.
The Eurostat report delved into more specific deal on the types of output in the eurozone with capital output falling by 2.6 percent and the production of durable consumer goods sinking by 2.2 percent. Energy consumption also fell, posting a 1.6 percent decline during the month.
Not emerging unscathed from the declines was Europe’s largest economy, Germany, which saw its industrial production drop by 2.3 percent in July. This puts its drop above the average value for the Eurozone. With the country on the verge of elections later this month, the poor economic performance could stand to be a thorn in the side of advocates of its current economic policies.