Eurozone Industrial Output Better Forecast in August After a 2-month Drop

The Industrial output in the eurozone has exceeded expectations in August after its negative results in the past two months which is expected to help the economic growth in the third quarter, in reference to the data on Friday.

According to the Eurostat, the European Union statistics agency, the industrial output grew by 1.0 percent on the month and 0.9 year-on-year.

These numbers are unexpected with Reuters poll with a forecast of 0.4 percent on the month and 0.2 than last year.

The reversed the decline in June and July after the monthly production growth in August that strengthened the slower outlook of the eurozone economy. By the third quarter, global trade tensions had a strong impact on the bloc thereby resulting in a decline following a 0.4 percent rise in the first half of the year. The next preliminary flash estimate of euro zone’s growth in the third quarter is scheduled to be published on October 30.

The previous forecast of 0.8 percent drop in July was also revised up to a 0.7 percent drop on the month. Similarly, the  production grew higher by 0.3 percent rather than dropping by 0.1 percent.

Higher energy production pushed the output was the influencing factor for the month of August reports shown. Besides energy output, the production of non-consumer goods, such as clothes and capital goods would mean larger demand from investors, contributed to the optimistic output in Summertime which resulted in a 1.4 percent increase.

Meanwhile, the production of durable consumer goods also grew by 1.5 percent which counters the 1.9 percent decline last month.

In general, there was growth despite the lack of industrial output growth in the bloc’s largest economy, in reference to the report of Eurostat. Although, reports in Germany showed a slight reduction in July.