Euro-area industrial output declined more than economists forecast in September, led by Germany, as the currency bloc’s economic recovery struggled to gain momentum.
Factory production in the 17-nation region fell 0.5 percent from August, the European Union’s statistics office in Luxembourg said today. That exceeded the median forecast in a Bloomberg News survey of 32 economists for a 0.3 percent drop. From the year-earlier month, September output rose 1.1 percent.
Euro-area economic growth probably slowed to 0.1 percent in the third quarter from 0.3 percent in the previous three months, according to a separate Bloomberg News survey. Eurostat publishes its first estimate of third-quarter gross domestic product tomorrow.
The European Central Bank unexpectedly cut its benchmark interest to a record low 0.25 percent last week in a bid to prevent slowing inflation from taking hold in a still-fragile euro-area economy.
“Looking ahead, output is expected to continue to recover at a slow pace, in particular owing to a gradual improvement in domestic demand supported by the accommodative monetary-policy stance,” ECB President Mario Draghi said on Nov. 7. “Euro-area economic activity should, in addition, benefit from a gradual strengthening of demand for exports.”
Industrial production in Germany, the euro area’s largest economy, fell 0.8 percent from August, according to today’s report. French output dropped 0.4 percent, while Italian and Spanish production increased 0.2 percent and 0.4 percent, respectively.