- Howard Archer, chief U.K. and European economist at IHS Global Insights
Industrial production in the Euro zone dropped in August, adding to signs that slowdown in China as well as downturn in other emerging economies are starting to taking their toll on the currency bloc's economy. The output produced by manufacturers, mines and utilities in the Euro area declined 0.5% on a seasonally adjusted basis in August, following the 0.6% gain. Measured on an annual basis, industrial production increased 0.9%, compared with 1.9% growth in July. The decrease in production was led by Germany, the Euro zone's manufacturing powerhouse. Industrial output also edged lower in Spain and Italy, but jumped by 1.6% in France, the Euro zone's second-largest economy. The Euro zone's economy is predicted to grow 1.5% this year and 1.6% in 2016, according to the International Monetary Fund. Economic output in the single currency bloc rose 0.4% on a quarterly basis in the April-June period for an annual 1.5%, with household spending giving a boost to the recovery.
Meanwhile, inflation in the Euro zone's second biggest economy remained benign in September. In monthly terms, French CPI decreased 0.4%, while the cost of living posted zero growth in the reported month.
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