Eurozone Industrial Output Falls Unexpectedly

(RTTNews) - Eurozone industrial output declined unexpectedly in May largely due to the fall in durable consumer goods production, official data revealed Wednesday.

Industrial production slid 0.2 percent month-on-month, in contrast to the 0.3 percent rise in April, Eurostat reported. This was the first decline in four months and came in contrast to the 0.3 percent expected increase.

Production of durable consumer goods and intermediate goods decreased 1.1 percent and 0.3 percent, respectively.

Partially offsetting these declines, energy output grew 2.2 percent. Non-durable consumer goods moved up 0.8 percent and capital goods rose 0.3 percent.

On a yearly basis, industrial production decreased 1.2 percent, in contrast to the 0.4 percent rise in April. Output was forecast to fall 0.5 percent.

Industrial production in the EU27 dropped 0.1 percent on a monthly basis and 0.3 percent from the prior year.

Among the member states of EU, the largest monthly decreases were recorded in Ireland, Malta and Lithuania. Meanwhile, Luxembourg, Hungary and Poland reported the highest increases.

ING economist Bert Colijn said the latest fall in output was a modest move which still leaves production above the February level, when the war in the Middle East started.

Hopes for more geopolitical stability, lower energy prices and strong public investment seem to drive optimistic views for now, Colijn said. The latter seems more of a sure bet than the first two, with Middle East uncertainty back on the table, he noted.