Eurozone industrial production fell 0.1% month on month in July, a smaller contraction than the 0.2% expected. June’s reading was revised from no growth to a 0.1% decline, leaving output down for a second consecutive month. On an annual basis, production improved from a revised 0.3% contraction in June to unchanged in July. Across the wider EU, output fell 0.3% on the month and rose 0.3% from a year earlier.
The monthly decline was concentrated entirely in non-durable consumer goods, where production dropped 1.6%. Output increased across every other main industrial grouping. Energy and durable consumer goods both rose 0.9%, capital goods gained 0.5%, and intermediate goods increased 0.3%. The broad gains suggest the headline contraction overstated the underlying weakness in Eurozone industry.
Performance nevertheless varied significantly across member states. Production fell most sharply in Denmark, Bulgaria and Lithuania, while Luxembourg, Croatia and Ireland recorded the strongest monthly increases. Overall, the smaller-than-expected decline and gains across capital goods, energy and intermediate goods offer some evidence of industrial resilience. However, two consecutive monthly contractions and downward revisions to June leave the broader recovery unconfirmed.
Data summary
| Indicator | Actual | Expected | Previous |
|---|---|---|---|
| Eurozone production m/m | -0.1% | -0.2% | -0.1%* |
*June was revised from 0.0% to -0.1%.
Additional headline data
| Indicator | July | June |
|---|---|---|
| Eurozone production y/y | 0.0% | -0.3%* |
| EU production m/m | -0.3% | -0.1%* |
| EU production y/y | 0.3% | 0.3%* |
*Eurozone annual growth was revised from 0.1% to -0.3%. EU monthly growth was revised from 0.2% to -0.1%, while annual growth was revised from 0.6% to 0.3%.
Eurozone components
| Industrial grouping | July | June |
|---|---|---|
| Intermediate goods | 0.3% | -0.9% |
| Energy | 0.9% | 1.4% |
| Capital goods | 0.5% | -1.8% |
| Durable consumer goods | 0.9% | 0.4% |
| Non-durable consumer goods | -1.6% | 1.8% |
Key takeaways
- Eurozone industrial production fell 0.1% in July, a smaller decline than the 0.2% expected.
- June was revised from stagnation to a 0.1% contraction, confirming a second consecutive monthly decline.
- The weakness was narrowly concentrated in non-durable consumer goods, where production dropped 1.6%.
- All four other main industrial groupings expanded, including capital goods, energy and intermediate goods.
- The composition points to resilience beneath the negative headline, but repeated contractions and adverse revisions leave the industrial recovery unconfirmed
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