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Euro zone June industry output drops by more than expected

Newly-manufactured Fiat, Lancia and Alfa Romeo automobiles sits on rail freight wagons at the Fiat SpA factory in Cassino, Italy in this file photo.

Alessia Pierdomenico/Bloomberg

Industrial output in the 19 countries sharing the euro currency fell by more than expected in June, as the production of capital and durable goods fell following sharp increases in the previous month, European statistics office Eurostat said on Monday.

Factory output fell most in Ireland and Malta, while the euro zone's two largest economies, Germany and France also showed a decline. Italy and the Netherlands showed an increase in monthly output, however.

Overall, industrial production in the euro area fell by 0.6 per cent in June but still increased by 2.6 per cent on an annual basis, staying below the 0.5 per cent drop forecast in a Reuters poll of 32 economists.

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After a 2.2 per cent monthly rise in May, the production of capital goods, such as machinery, fell by 1.9 per cent. The output of durable consumer goods declined 1.2 per cent in June following a 1.4 per cent rise in May.

For May, Eurostat revised its overall estimates downwards by 10 basis points, to 1.2 per cent for the monthly and 3.9 per cent for the annual reading.

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