Eurozone industrial production experienced an unexpected decline in April due to a decrease in the output of intermediate goods, according to official data released on Thursday.
Eurostat reported that industrial output fell by 0.1 percent on a monthly basis, marking the first decline in three months. This was contrary to the forecast, which projected a growth of 0.2 percent following a 0.5 percent increase in March. Among the major industrial groupings, only intermediate goods output saw a reduction, decreasing by 0.4 percent. In contrast, energy output grew by 0.4 percent.
The production of non-durable consumer goods showed the most significant growth at 3.4 percent. Capital goods and durable consumer goods production also increased, posting gains of 0.7 percent and 0.3 percent, respectively.
Annually, the decline in industrial production widened to 3.0 percent from March's 1.2 percent drop, exceeding economists' forecast of a 1.9 percent decline. While industrial production in the EU27 expanded by 0.5 percent month-on-month, it decreased by 2.0 percent compared to the previous year in April.
The highest monthly increases were observed in Denmark, Greece, and Poland. Conversely, Luxembourg, Latvia, and Ireland reported significant declines.
Lily Millard, an economist at Capital Economics, noted that growth in euro area industrial production is likely to remain subdued in the coming months.
The latest Purchasing Managers' survey indicated that the downturn in euro area manufacturing activity eased in May, as production approached stabilization and orders fell at a slower pace. The manufacturing Purchasing Managers' Index rose to 47.3 in May from 45.7 in April. However, a reading below the neutral 50.0 level still signals contraction.
