(RTTNews) - Eurozone industrial production declined in July but at a slower-than-expected pace due to the rebound in non-durable consumer goods output, data from Eurostat revealed on Friday.
Industrial production fell 0.3 percent on a monthly basis in July after remaining flat in June. Output was forecast to decrease 0.6 percent.
Among main industrial grouping, production of durable consumer goods and intermediate goods fell 2.8 percent and 1.3 percent, respectively. Output of capital goods also decreased in July, down 1.6 percent.
Meanwhile, non-durable consumer goods output advanced 1.8 percent after a 2.3 percent fall. At the same time, growth in energy output weakened to 0.3 percent from 1.7 percent.
Year-on-year, industrial output decreased 2.2 percent in July. Economists had forecast a 2.7 percent fall following a 4.1 percent decrease in June.
ING economist said Bert Colijn said it does not look like a turnaround is happening over the coming months. The economy remained reliant on service sector growth to maintain GDP growth recovery, he noted.
With manufacturing performing poorly, a GDP growth rate of 0.3 percent may be the top of what can be expected for the eurozone for the foreseeable future, the economist added.
Data showed that industrial production in the EU27 edged down 0.1 percent on month and by 1.7 percent from the same period last year.
The largest monthly decreases were recorded in Malta, Estonia and Romania. Meanwhile, Ireland, Croatia and Belgium reported the highest increases.
