Weak Industrial Output in Eurozone

Industrial output in the eurozone contracted more than expected in October, highlighting another concerning data point for the sector and indicating a sustained decline in global demand for manufactured goods.

October Numbers

According to figures released by European Union statistics agency Eurostat on Wednesday, total production saw a 0.7% decrease month-on-month in October. This follows a 1.0% decline recorded in September.

Economists surveyed by The Wall Street Journal predicted a smaller decline of 0.3% for the month, making the actual numbers worse than anticipated.

The decline in industrial output was mainly driven by a drop in the production of capital goods, which fell by 1.4%. Intermediate goods and nondurable consumer goods both experienced a decrease of 0.6%. On a positive note, production of durable consumer goods, which refers to products designed for use over one year, saw a slight increase of 0.2%, and energy production grew by 1.1%.

Yearly Comparison

Compared to the same month in 2022, industrial production contracted by a significant 6.6%. This emphasizes the extent of the difficulties faced by the sector throughout this year. A weak economic outlook, coupled with stricter financing conditions due to higher central bank interest rates, has led to a decrease in both investment and consumer spending.

Purchasing Manufacturers' Data

This industrial production report comes after earlier survey results from purchasing manufacturers in the eurozone, which hinted at another contraction in November. However, this contraction was slighter than in October.

Eurozone Nations

When looking at individual eurozone nations, larger economies such as Germany, France, Italy, and Spain also experienced declines in output. Germany saw a 0.1% dip, while France and Italy experienced drops of 0.3% and 0.2% respectively. Spain suffered the largest decrease, with output falling by 0.6%, according to Eurostat's measurements.