Eurozone August industrial production slows sharply
The slowdown of the Euro zone’s recovery from the Covid-19 pandemic continued as industrial production data revealed a sharp slowdown in August, official data showed on Wednesday.
European Union’s statistics office Eurostat said industrial production in the 19-country region rose 0.7% month-on-month in August and 7.2% year-on-year.
The fall was attributed to a steep decline in the capital goods output, offset slightly by higher production of durable consumer goods.
Capital goods such as machinery and vehicles fell 1.6% month on month for a 13.2% year-on-year plunge. Durable consumer goods such as televisions increased 6.8% on the month and 4.3% on year.
Germany, the euro zone’s biggest economy, recorded a 11.2% year-on-year drop in production in August and the second biggest, France, was down 7.3%.
Manufacturing has been less disrupted than the larger services sector by the recent rise in coronavirus infections and subsequent restrictions.
Factories have been able to increase production after Europe’s strict lockdowns were lifted in May, with demand from China boosting exports.