By Maria Martinez
Eurozone industrial production declined in May as supply-chain bottlenecks hindered activity, Eurostat data released Wednesday showed.
Output from factories, mines and utilities across the single-currency area in May fell 1.0% over the previous month, the EU statistics agency said. Economists polled by The Wall Street Journal had forecast a 0.1% drop. Eurostat revised down month-on-month industrial output growth for April to 0.6% from 0.8% in the first estimate.
Production of non-durable consumer goods fell by 2.3% on month, energy by 1.9%, capital goods by 1.6% and intermediate goods by 0.2%, while production of durable consumer goods rose by 1.6%, Eurostat said.
On an annual basis, industrial production rose 20.5% in May, less than the 22.4% increase forecast by economists. This surge was partly due to a base effect owing to very weak data in May 2020, when many factories were ordered to shut and the economy was brought to a near halt amid the public health crisis.
Eurostat revised up annual growth in industrial output for April to 39.4% from 39.3% previously.
The outlook for the eurozone’s industrial sector remains positive as an acceleration in Covid-19 vaccinations helps the region emerge from lingering restrictions and spurs demand. However, supply-chain disruptions continue to affect production in some sectors, particularly motor vehicles, and these strains are unlikely to fade completely until the end of the year, economists say.
Write to Maria Martinez at [email protected]