Euro Area: Industrial production growth fades in May
Industrial output rose 0.2% over the previous month in seasonally adjusted terms in May, following April’s 1.0% increase. May’s result reflected a sharper contraction in the production of energy as well as softer growth in the production of capital goods. On the flip side, the production of intermediate goods, durable and non-durable consumer goods rebounded.
Looking at the individual economies for which data is available, industrial output increased in 11 countries, while it contracted in eight. Focusing on the largest economies, production increased in France, Italy, the Netherlands and Spain, while it contracted in Germany.
On an annual basis, industrial production fell 2.2% in May, swinging from April’s 0.2% increase. Lastly, annual average growth in industrial production came in at 1.7% in May, down from 2.1% in April.
Commenting on the release, Bert Colijn, senior economist at ING, stated:
“For the months ahead, weakness continues to be in the cards as surveys point to a drying up of backlogged orders and new orders are weakening. Global demand is going through a weak patch and that is reflected by a subdued outlook for the manufacturing sector. For GDP growth in the second quarter, the impact is clear. […] It’s likely that the eurozone economy has continued to straddle the zero growth line in the second quarter, extending the current phase of stagnation in economic activity.”