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Eurozone Industrial Production Declines for Second Straight Month

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Eurozone Industrial Production Declines for Second Straight Month

Industrial output in the Eurozone declined for the second consecutive month in January, although the underlying trend shows modest recovery is gaining traction.

Eurozone industrial production fell 0.2 percent in January, following a decline of 0.4 percent the previous month, the European Commission’s statistics branch showed today. On an annualized basis, however, industrial production rose 2.1 percent, beating estimates. This suggests a very modest recovery is taking place in the now 18-nation currency bloc.

The monthly decline was attributed mainly to a 2.5 percent drop in energy production, official data showed. Production of durable goods fell 0.6 percent, while intermediate goods fell 0.1 percent. Positive contributions were made by non-durable consumer goods and capital goods, which increased 0.4 percent and 0.9 percent, respectively.

On an annualized basis, capital goods production increased 5.8 percent, while intermediate goods rose 3.7 percent. Non-durable consumer goods were up 1.4 percent compared to the previous 12 months. Energy production was down 4.6 percent compared to January 2013.

Industrial output has declined in three of the past six months, today’s report showed.

Among Eurozone member-states, Luxembourg registered the highest annualized increase at 12.7 percent. The biggest drop was registered in Malta (-12 percent), followed by Latvia (-11 percent) and Finland (-7.1 percent).

Industrial output rose 0.1 percent in the 28-member European Union. Compared to the previous 12 months, EU output was 2.4 percent higher.

The Eurozone economy escaped an 18-month recession in the second quarter of 2013. Since then, growth has been choppy. The currency region is forecast to grow 1.2 percent this year, according to a revised estimate from the European Commission.

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