Euro­zone in­dus­trial out­put re­bounds more than fore­cast in Aug.

Tehran Times - - ECONOMY -

Pro­duc­tion at fac­to­ries in the euro zone in­creased in Au­gust by more than fore­cast, re­vers­ing the neg­a­tive trend of the pre­vi­ous two months in what could prove a boost for the bloc’s eco­nomic growth in the third quar­ter, data re­leased on Fri­day showed.

The Eu­ro­pean Union sta­tis­tics agency Euro­stat said in­dus­try out­put in the 19-coun­try cur­rency bloc was up in Au­gust by 1.0 per­cent on the month and by 0.9 per­cent year-on-year.

Both fig­ures are a pos­i­tive sur­prise af­ter econ­o­mists polled by Reuters had fore­cast a smaller 0.4 per­cent rise month-on-month and a 0.2 per­cent drop from a year ear­lier.

The monthly pro­duc­tion growth in Au­gust re­versed de­clines in June and July, which had strength­ened the view of a slow­down in the euro zone’s econ­omy into and in the third quar­ter, hit by global trade ten­sions and fall­ing eco­nomic sen­ti­ment.

The bloc grew by 0.4 per­cent in the two first quar­ters of the year. Euro­stat will re­lease its pre­lim­i­nary flash es­ti­mate of euro zone’s growth in the third quar­ter on Oc­to­ber 30.

Euro­stat also re­vised up its pre­vi­ous es­ti­mates for in­dus­trial pro­duc­tion in July. It said on Fri­day that out­put fell by 0.7 per­cent on the month in­stead of the 0.8 per­cent drop es­ti­mated ear­lier. Year-on-year, pro­duc­tion in­creased by 0.3 per­cent in­stead of fall­ing by 0.1 per­cent.

The Au­gust out­put growth on the month was driven by a 1.9 per­cent rise in en­ergy pro­duc­tion, data showed.

The pro­duc­tion of durable con­sumer goods, like cars and fridges, also in­creased by 1.5 per­cent, partly off­set­ting its 1.9 per­cent drop of the pre­vi­ous month.

The sur­pris­ing large in­crease in the out­put in a sum­mer month was also due to a 1.4 per­cent rise in the pro­duc­tion of non-con­sumer goods, like clothes, and of cap­i­tal goods, such as ma­chiner­ies, which tend to in­di­cate man­agers’ grow­ing ap­petite for in­vest­ments.

The over­all in­crease came de­spite no ex­pan­sion of in­dus­trial out­put in Ger­many, the euro zone’s largest econ­omy, Euro­stat data showed. The fig­ures are not the same as those al­ready re­ported by Ger­many, which showed a slight fall in Au­gust, but a less pro­nounced de­cline in July.

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