Euro area’s industrial production output contracts sharply in December

Euro area’s industrial production output shrank sharply in December. According to estimates from Eurostat, the seasonally adjusted industrial production fell 2.1 percent month-on-month in December from 0 percent in the prior month. Consensus expectations were for the industrial output to have fallen 1.6 percent.

On a year-on-year basis, the industrial production fell 4.1 percent, a further decline from prior month’s fall of 1.7 percent. Consensus expectations were for the industrial output to fall 2.3 percent year-on-year. The average industrial production for the whole of 2019 dropped 1.7 percent year-on-year.

On a sequential basis, production of capital goods dropped 4 percent in the euro area. Production for intermediate goods fell 1.7 percent. Meanwhile, production for non-durable consumer goods and durable consumer goods fell 1.3 percent and 1.1 percent, respectively. Energy production dropped 0.5 percent sequentially. Among member states, the largest falls in industrial production were seen in Ireland, whereas highest rises were seen in Portugal and Greece.

In the euro area, production of capital goods dropped 6.7 percent year-on-year, whereas it fell 5.5 percent in intermediate goods. Production for durable consumer goods and energy dropped 1.4 percent and 2.3 percent, respectively. On the other hand, production of nondurable consumer goods rose 1.3 percent year-on-year. Among member states, the largest falls in industrial production were seen in Estonia and Germany, whereas the highest rises were seen in Malta and Portugal.