- Howard Archer, IHS Global Insight economist
Industrial output in the Euro area increased at its fastest pace since February, rising 0.6% in July, well ahead of market expectations of a 0.3% increase, suggesting that a positive contribution to growth is likely in the third quarter. Year-on-year, the production measure grew 1.9% in July, after a 1.5% increase in the previous month, revised from the 1.2% growth reported initially. Economists were looking for a 0.6% rise, while the actual annual gain was the strongest since March. Concerning the good categories, the monthly pickup in production was led by a 3% surge in energy output, which was a similar rate of growth as seen in the previous month. Capital goods production rebounded with a 1.4% rise and durable goods output advanced 1.3%. However, production of both intermediate goods and non-durable consumer goods dropped 0.6% each from the preceding month.
Among the big four Euroland countries, German output recovered with 0.5% monthly growth and Italian production rebounded with a 1.1% gain. Spanish production grew for a third straight month, rising 0.6%. However, output fell for a second month in France, down 0.8%.
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