Company News

Euro zone industrial production slows in Aug as expected

BRUSSELS, Oct 14 (Reuters) - Euro zone industrial production slowed sharply in August as expected, mainly due to a plunge in the output of capital goods even though it was cushioned to some extent by higher production of durable consumer goods, data showed on Wednesday.

The European Union’s statistics office Eurostat said industrial production in the 19 countries sharing the euro rose 0.7% month-on-month in August for a 7.2% year-on-year fall, in line with expectations of economists polled by Reuters.

The output of capital goods, used for investment, fell 1.6% month on month for a 13.2% annual plunge. But production of durable consumer goods, like TVs, or washing machines, increased 6.8% on the month and 4.3% on the year - the only category to record annual gains in August.

Germany, the euro zone’s biggest economy, recorded a 11.2% year-on-year drop in production in August and the second biggest, France, was down 7.3%. (Reporting by Jan Strupczewski; editing by Philip Blenkinsop)