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Euro zone June industry output drops by more than expected

Published 14/08/2017, 10:08
© Reuters. Employees work in Daimler first battery factory prior to the beginning of the ground breaking ceremony for the second battery factory at Daimler subsidiary ACCUMOTIVE in Kamenz

BRUSSELS (Reuters) - Industrial output in the 19 countries sharing the euro currency fell by more than expected in June, as the production of capital and durable goods fell following sharp increases in the previous month, European statistics office Eurostat said on Monday.

Factory output fell most in Ireland and Malta, while the euro zone's two largest economies, Germany and France also showed a decline. Italy and the Netherlands showed an increase in monthly output, however.

Overall, industrial production in the euro area fell by 0.6 percent in June but still increased by 2.6 percent on an annual basis, staying below the 0.5 percent drop forecast in a Reuters poll of 32 economists.

After a 2.2 percent monthly rise in May, the production of capital goods, such as machinery, fell by 1.9 percent. The output of durable consumer goods declined 1.2 percent in June following a 1.4 percent rise in May.

© Reuters. Employees work in Daimler first battery factory prior to the beginning of the ground breaking ceremony for the second battery factory at Daimler subsidiary ACCUMOTIVE in Kamenz

For May, Eurostat revised its overall estimates downwards by 10 basis points, to 1.2 percent for the monthly and 3.9 percent for the annual reading.

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