Source:Eurostat. in weights

15 JULY 2011


INDUSTRIAL output in the Euro area stayed nearly unchanged or +0.1% month-on-month in May as the production of Intermediate Goods stayed flat for the third consecutive month while Capital Goods climbed a modest +0.6%. In the EU 27, output climbed +0.4%, and equally Intermediate Goods along with Energy, thanks to the UK's +0.9% overall rise. The Euro area's slow down was further aggravated by Durable Consumer Goods -0.5% production dip (-0.3% in the EU 27) in addition to Non Durable -0.4% (-0.3%). The production of Energy turned positive and climbed +0.9%.

With the exception of France's +2% rebound and Germany‘s +1.2% surge, the Euro area's two other heavy weights under performance, +0.4% in Spain and -0.6% in Italy pushed down the overall index. Poland and Slovakia, eastern Europe's economic leaders recorded respectively +1.7% production increase, the second consecutive rise and +2.1% for the third uninterrupted month.

Finland and Denmark kept sustained output momentum, respectively +1.9% and +2.7% while Sweden engaged an upward curve following two minor gaps and rose +0.9%.

Year-on-year, overall output in the Euro area rose +4%, or less than half December figure and equally in the EU 27. Intermediate Goods mirrored this declining trend due to lesser industrial activities as modest demand reflected considerable delays over investments decisions imposed by debt concerns.

Energy output consequently fell -6.7%. The production of Capital Goods +9.3% increase followed a similar pattern  along with Durable Consumer Goods +1.2%. Non Durable Consumer Goods +2.1% output rise, less cyclical than other industrial groups due to the Food and Agriculture Industry products remained at levels similar to earlier impulsion.

In Germany, overall output moved down to +7.5% and in Italy to +1.8%. Spain's contracted further and dropped -0.4% The UK's production index rescinded -1.1%. The Czech Republic's +12.6% and Poland's +9.3% regained motion while Slovakia's +10.7% gain slid seven percentage points below December figures, one month ahead the country's entry into the Euro area. Sweden's gauge moved down by two percentage points to +8.2% while Denmark's and Finland ‘s respective indices kept sustained momentum and climbed +7.7% and +6.2%.