Tuesday

19th Sep 2017

European industrial output slumps

  • Europe's manufacturing output fell for the second successive month (Photo: arbyreed)

The eurozone economy is facing another slowdown after figures revealed that industrial output fell for a second successive month.

Data published on Wednesday (13 August) by Eurostat showed a 0.3 percent drop in output, which covers manufacturing and energy goods, in June across the 18-country currency bloc and by 0.1 percent across the EU’s 28 member states.

Thank you for reading EUobserver!

Subscribe now and get 40% off for an annual subscription. Sale ends soon.

  1. €90 per year. Use discount code EUOBS40%
  2. or €15 per month
  3. Cancel anytime

EUobserver is an independent, not-for-profit news organization that publishes daily news reports, analysis, and investigations from Brussels and the EU member states. We are an indispensable news source for anyone who wants to know what is going on in the EU.

We are mainly funded by advertising and subscription revenues. As advertising revenues are falling fast, we depend on subscription revenues to support our journalism.

For group, corporate or student subscriptions, please contact us. See also our full Terms of Use.

If you already have an account click here to login.

Strong performances in Malta and Denmark, together with slight increases in Germany, France and Italy, were offset by substantial falls in Ireland, the Netherlands, and Spain.

Industrial production across the bloc is now at its lowest level in nine months.

EU officials had hoped that 2014 would be the start of a slow but steady recovery by the eurozone, with the European Commission forecasting in May that the 18-country bloc would grow by 1.2 percent this year followed by a 1.7 percent spike in 2015.

But new data is making these projections look increasingly optimistic.

Instead, it is expected that data to be published Thursday by Eurostat will reveal a slowdown in the eurozone economy in the second quarter of 2014 after having only recorded a meagre 0.2 percent growth rate between January and March.

With the bloc still seeing stubbornly high unemployment levels and price increases of 0.4 percent, well below the European Central Bank’s 2 percent target, officials in Brussels and Frankfurt were already alert to the risk of stagnation.

Meanwhile, the EU’s ongoing sanctions battle with Russia, which has now seen Brussels and Moscow slap bans on food imports from each other, has emerged as a new threat to growth prospects.

On Tuesday, research by German thinktank ZEW found that the country’s investor sentiment has dropped to its weakest level since 2012 based, in part, on concerns that the sanctions will hurt its export-based economy.

For its part, the European Central Bank (ECB) has cut its main interest rate to a record low of 0.15 percent and is preparing to follow the lead of the US Federal Reserve by launching its own government bond buying programme – known as quantitative easing (QE) – in a bid to cut the cost of borrowing for businesses.

However, ECB president Mario Draghi has said the ECB will only launch a QE programme if the eurozone economy goes back into recession.

EU agency to fight election hacking

A new model EU cyber security agency could help member states defend their elections against "hybrid attacks", the Commission has said.

Investigation

EU bank accused of muzzling watchdog

An ongoing review of the the European Investment Bank's "complaints mechanism" could make the oversight branch less independent and less effective.

Stakeholders' Highlights

  1. EU2017EEFour Tax Initiatives to Modernise the EU's Tax System
  2. Dialogue PlatformResponsibility in Practice: Gulen & Islamic Thought
  3. Counter BalanceHuman Rights Concerns Over EIB Loan to the Trans Anatolian Pipeline Project
  4. Mission of China to the EUChina Leads the Global Clean Energy Transition
  5. CES - Silicones EuropeFrom Baking Moulds to Oven Mitts, Silicones Are a Key Ingredient in Kitchens
  6. Martens CentreFor a New Europeanism: How to Put the Motto "Unity in Diversity" Into Practice
  7. Access MBAGet Ahead With an MBA Degree. Top MBA Event in Brussels
  8. Idealist QuarterlyIdealist Quarterly Event: Building Fearless Democracies With Gerald Hensel
  9. Mission of China to the EUPresident Xi Urges Bigger Global Role for Emerging Economies
  10. EU2017EEAre We Socially Insured in the Future of Work?
  11. European Jewish CongressFrench Authorities to Root Out "Societal Antisemitism" After Jewish Family Assaulted
  12. European Federation of Local Energy CompaniesClean Energy for All? On 10.10 Top-Level Speakers Present the Clean Energy Package