Today’s industrial production data for Europe fell shy of expectations, with production falling by 0.8 per cent on the month in February, a tad worse than the 0.7 per cent decline expected.
The reading was “poor”, said Pantheon Macroeconomics, but perhaps not a surprise, given the 1.9 per cent jump in January.
A downbeat report, but not catastrophic given the jump in output in January. A 10.5% month-to-month crash in Ireland and a 4.4% decline in Greece weighed on the headline, but production also fell in the major economies. Across sectors, the decline was concentrated in consumer goods and energy production, while capital goods production fell only marginally and intermediate goods output was flat. The poor headline, however, does not change the story that production ex-construction likely rose strongly in the first quarter. Assuming no change in output in March—a fair bet—output rose 1% quarter-on-quarter in Q1, up from a 0.4% rise in Q4, supporting GDP growth.
More here from Eurostat.