Euro zone industry output up in August much more than expected
Reuters
Published Oct 12, 2022 05:12AM ET
Updated Oct 12, 2022 07:11AM ET
BRUSSELS (Reuters) -Euro zone industrial production soared in August far beyond expectations as manufacturers boosted investment despite fears of an upcoming recession, official estimates showed on Wednesday.
The European Union's statistics office Eurostat said industrial production in the 19 countries sharing the euro increased 1.5% month-on-month in August for a 2.5% year-on-year rise.
Economists polled by Reuters had expected much more modest increases of 0.6% on the month and 1.2% year-on-year, after production fell in July.
The better-than-expected data failed however to dispel fears of a recession.
"All the evidence suggests that euro zone industry is heading for a significant contraction in the coming months," said Andrew Kenningham, chief Europe economist at Capital Economics, a London-based research outfit.
He underlined that the rise in August did not fully reverse the 2.3% monthly fall recorded in July.
The positive reading was driven by output of capital goods, such as machinery, which rose 2.8% compared with July, in a sign of optimism pointing to new appetite for investment.
Manufacturers also produced more consumer goods, while they cut their energy output, data showed.
Among the bloc's largest economies, France's industrial production rose 2.5% on the month, Italy's was up by 2.3%, whereas output declined in Germany by 0.5%.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.