November output in eurozone falls
Source: Agencies |
January 15, 2013, Tuesday
|
Print Edition
Print Edition
INDUSTRIAL output across the 17 European Union countries that use the euro fell in November for the third straight month, official figures showed yesterday, in a further sign the region will remain stuck in recession for the fourth quarter of 2012.
The 0.3 percent monthly decline reported by Eurostat, the EU's statistics office, was worse than expected. The consensus in the markets was that output would edge up a modest 0.1 percent during the month.
Even though the rate of decline had eased following the 2.3 percent and 1 percent drops reported in September and October, respectively, the figures are likely to cement market hopes that the recession in the eurozone has deepened. Year-on-year, industrial production in the eurozone fell 3.7 percent.
"November's eurozone industrial production data provided further strong signs that the recession in the region as a whole intensified in the final quarter of last year," said Ben May, European economist at Capital Economics.
The prevailing view is that the eurozone economy shrank further in the fourth quarter of 2012, with most economists predicting a bigger decline than the 0.1 percent drop recorded for the third quarter. A recession is defined as two consecutive quarters of economic contraction.
Industrial output is important in the eurozone, not least in Germany, Europe's largest economy, where output rose by a monthly rate of 0.1 percent.
Though the increase in Germany was a turnaround from big falls in the previous two months, it's clear that the country's high-value exporters, such as its major car manufacturers, are struggling in a tough European marketplace. Many countries, such as Greece, Italy and Spain, are in recession as their governments enact tough austerity steps, such as spending cuts, to get their public finances back into shape.
The recent weakness in German industrial production has also raised concerns that Germany will suffer at least one quarter of negative economic output.
Volkswagen AG reported a 6.5 percent drop in sales in western Europe, excluding Germany, to 1.85 million vehicles.
The 0.3 percent monthly decline reported by Eurostat, the EU's statistics office, was worse than expected. The consensus in the markets was that output would edge up a modest 0.1 percent during the month.
Even though the rate of decline had eased following the 2.3 percent and 1 percent drops reported in September and October, respectively, the figures are likely to cement market hopes that the recession in the eurozone has deepened. Year-on-year, industrial production in the eurozone fell 3.7 percent.
"November's eurozone industrial production data provided further strong signs that the recession in the region as a whole intensified in the final quarter of last year," said Ben May, European economist at Capital Economics.
The prevailing view is that the eurozone economy shrank further in the fourth quarter of 2012, with most economists predicting a bigger decline than the 0.1 percent drop recorded for the third quarter. A recession is defined as two consecutive quarters of economic contraction.
Industrial output is important in the eurozone, not least in Germany, Europe's largest economy, where output rose by a monthly rate of 0.1 percent.
Though the increase in Germany was a turnaround from big falls in the previous two months, it's clear that the country's high-value exporters, such as its major car manufacturers, are struggling in a tough European marketplace. Many countries, such as Greece, Italy and Spain, are in recession as their governments enact tough austerity steps, such as spending cuts, to get their public finances back into shape.
The recent weakness in German industrial production has also raised concerns that Germany will suffer at least one quarter of negative economic output.
Volkswagen AG reported a 6.5 percent drop in sales in western Europe, excluding Germany, to 1.85 million vehicles.
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