Eurozone industrial production declined for the third consecutive month in November, confounding expectations for a recovery and signaled a severe downturn during the final quarter of 2012.
Industrial output slipped by 0.3 percent in November from a month ago, when it was down 1 percent, data published by Eurostat showed Monday. The decline was in contrast to a 0.2 percent rise forecast by economists.
On a yearly basis, industrial output decreased 3.7 percent, which was larger than the 3.3 percent decline logged in October and bigger than the expected 3.1 percent drop.
Intermediate goods production dropped at a slower pace of 0.3 percent, while the decline in production of energy accelerated to 1.6 percent. Only output of capital goods grew in November, up by 0.7 percent.
Non-durable consumer goods output declined 1.2 percent, offsetting the previous month's 1.2 percent growth.
Data showed that industrial production declined in sixteen member states and rose in five. Italy registered the biggest annual drop, down 7.6 percent. Meanwhile, Lithuania, Estonia and Malta registered strongest increases.
Capital Economics European Economist Ben May said the industrial sector is unlikely to kick start a recovery in the wider economy. So, expectations for a small decline in Eurozone GDP this year is too optimistic, the economist noted.
According to the purchasing managers' surveys for December, the downturn in the euro area eased, as the rate of contraction in economic output and new business slowed.
In December, the European Central Bank projected euro area GDP growth between -0.9 percent and 0.3 percent in 2013. The central bank expects a gradual recovery late this year.
At the same time, inflation is seen between 1.1 percent and 2.1 percent. At 2.2 percent, the current inflation rate remains above the ECB ceiling.
news.instaforex.com »2013-01-14 16:34