For the second month in a row the Eurozone disappoints analysts
The industry output in the Eurozone is showing further declines in June.
Scott Wright (SW)May 8, 2025
Eurozone industrial production spiked in June, official data showed on Wednesday, but the rebound after coronavirus-induced record declines in March and April fell short of expectations for the second straight year and slowed from May. The rise in manufacturing output was driven by an increase in production of durable goods such as automobiles and refrigerators, which could be seen as a positive sign of consumer confidence as COVID-19 restrictions in the area have been eased. However, the month-on-month increase was less than economists had forecast. From May onwards, it slowed and production remained largely below pre-crisis levels. According to the statistics office of the European Union Eurostat, production in the 19-country currency bloc rose by 9.1% in June compared to May, after it had risen by 12.3% in May compared to the previous month. Economists polled by Reuters had forecast an increase of 10.0% in June compared to the previous month. The May reading had also disappointed economists, who had expected a 15% increase as factories reopened after closings were softened. Eurostat also revised its previous industrial production estimate in May down slightly from 12.4%. A clearer indication that the bloc's manufacturing sector is nowhere near recovering was the 12.3% year-over-year decline in June production, more than the market was expecting with a 11.5% decline. The year-on-year decline was less pronounced than in May and April and confirmed a gradual recovery. All countries for which data were available recorded an annual decline, with the exception of Ireland, where industrial production rose 4.5% year over year in June. In a month-on-month comparison, the production of durable consumer goods rose by 20.2%, the highest increase among the segments assessed by Eurostat. The production of capital goods also increased significantly by 14.2%, which could indicate that factory managers are more willing to invest. Production in the energy sector increased by only 2.6%, while the production of consumer goods, such as clothing and canned goods, increased by 4.8% compared to the previous month.
