BY DEUTSCHE PRESSE-AGENTUR – DPA
Eurozone industrial production declined for the first time in three months in October, with almost all sectors contracting as economic uncertainty and higher producer prices took a toll on demand.
After rising for two straight months, industrial output dropped 2% from September, Eurostat, the statistical office of the European Union, reported on Wednesday.
The pace of decline exceeded the expected 1.5% drop and reversed the revised 0.8% rise in September.
All sectors except non-durable consumer goods contracted in October.
Once again, energy output posted the biggest monthly fall of 3.9%, followed by a 1.9% decrease in durable consumer goods production.
The output of intermediate goods was down 1.3%, and that of capital goods by 0.6%. In contrast, the production of non-durable consumer goods gained 0.3%. Every year, the increase in industrial output weakened to 3.4%, as expected, from 5.1% in September.
Data showed that industrial production in the EU27 fell 1.9% from September when output was up 0.7%. The annual output growth slowed to 3.7% from 5.8%.
As the positive effects of easing supply-side issues wane, the outlook remains bleak for the winter months, ING economist Bert Colijn noted.
The slowing trend in new orders is set to continue as goods consumption is experiencing a broad correction.
The purchasing managers’ survey suggested that the downturn in the euro area manufacturing sector continued in November but rates of decline in production and orders were less aggressive than in October.
Official data showed that the currency bloc grew only 0.3% in the third quarter.
The currency bloc is widely expected to enter a recession early next year.
Last month, the Paris-based Organization for Economic Co-operation and Development (OECD) projected eurozone real GDP to climb 3.3% this year and only 0.5% in 2023, owing to Russia’s invasion of Ukraine, monetary policy tightening, and the global slowdown.