Recession talk in eurozone mounts as industry slumps

LONDON, Feb 13, (AP): Slumping industrial output across the 19-country eurozone is stoking talk of a possible recession this year, even before any potential damage from Brexit next month.

Official figures on Wednesday showed that industrial output in the eurozone was 4.2 percent lower in December than the year before, increasing concerns about the economy just at a time when the bloc is facing the prospect of Britain crashing out of the European Union without a deal.

The annual rate of decline in industrial production was the worst since November 2009 and has ratcheted up expectations that eurozone economic growth in the fourth quarter may be revised down from an already paltry quarterly rate of 0.2 percent.

Compared with the previous month, output was down 0.9 percent December against expectations for a 0.4 percent fall. The fall was not confined to one sector or one country – it was broad-based.

“The downturn will serve to keep worries about a possible eurozone recession alive,” said Andrew Kenningham, chief European economist at Capital Economics.