Euro-Area Industrial Production Falls 0.3%, More Than Forecastby and
Decline in September followed 0.4% drop in previous month
GDP data to show third-quarter economic growth of 0.4%
Industrial production in the euro area fell more than economists forecast in September, which may raise concerns among European Central Bank policy makers about the outlook for the economy.
The 0.3 percent drop published by Eurostat exceeded the 0.1 percent decline economists in a Bloomberg survey had predicted. The European Union statistics office revised data for August to show a 0.4 percent drop, slightly smaller than initially estimated.
The report is the last major piece of euro-zone data before Eurostat publishes its estimate of third-quarter gross domestic product on Friday. Production barely rose in the quarter, and the economy probably grew 0.4 percent in the period, matching the pace of the previous three months.
ECB President Mario Draghi has said that more stimulus may be needed to revive inflation in the 19-nation economy. Speaking to European lawmakers on Thursday, he said that “downside risks stemming from global growth and trade are clearly visible.”
Chris Williamson, chief economist at Markit, said the latest data will put “additional pressure on policymakers to inject more stimulus to tackle the region’s economic malaise.” While surveys suggest factory output strengthened at the start of this quarter, the rate of increase signaled “remains only modest,” he said.