Euro area industrial output drops 1.1%, EU down 0.8% in December

In December 2024, seasonally adjusted industrial output fell by 1.1 per cent in the euro area and by 0.8 per cent across the EU compared to November 2024, according to the latest data from Eurostat, the statistical office of the European Union.

This downturn follows modest gains in November, where production grew by 0.4 per cent in the euro area and by 0.2 per cent in the EU.

The production of intermediate goods and capital goods saw the largest monthly falls in December, decreasing by 1.9 per cent and 2.6 per cent respectively in the euro area. However, there was some positive news with non-durable consumer goods jumping by 5.1 per cent.

In the EU, December's figures also reflect challenges and resilience across sectors. Intermediate goods saw a decrease of 1.8 per cent. Meanwhile, energy production bucked the trend with a modest increase of 0.6 per cent. Capital goods, often an indicator of broader economic investment, fell by 2.0 per cent. Durable consumer goods also declined by 1.0 per cent. However, non-durable consumer goods experienced a significant rise of 5.2 per cent.

Among the Member States, Belgium, Portugal, and Austria experienced the most significant monthly declines, with Belgium witnessing a sharp fall of 6.8 per cent, followed by Portugal, and Austria at -4.4 per cent and -3.3 per cent, respectively. Conversely, Ireland, Luxembourg, and Croatia reported strong gains, led by Ireland's impressive 8.2 per cent increase, with Luxembourg, and Croatia at +6.7 per cent and +6.3 per cent, respectively.

Year-over-year (YoY), the picture remains grim with industrial production in December 2024 showing a decline of 2.0 per cent in the euro area and 1.7 per cent in the EU compared with the same month in 2023.

Over the full year, the euro area saw a decline of 1.7 per cent in production, while the EU reported a sharper drop of 2.0 per cent.

Annually, capital goods production was hit hardest, plunging by 8.1 per cent in the euro area. On the positive side, energy production saw a slight increase of 0.5 per cent, and non-durable consumer goods surged by 8.3 per cent, offering some sectors a silver lining amid the downturn.

The annual figures further delineate a complex economic landscape across the EU. Intermediate goods production fell by 2.3 per cent while energy production saw a rise of 0.6 per cent. The steepest decline was seen in capital goods, which plummeted by 7.5 per cent. Durable consumer goods also dropped by 1.8 per cent. In contrast, non-durable consumer goods surged by 8.2 per cent.

Regionally, the largest annual decreases were observed in Austria, which experienced a drop of 9.5 per cent, followed by Italy with a 7.1 per cent decrease, and Hungary, where industrial output contracted by 6.4 per cent. Malta recorded a substantial increase of 14.4 per cent, with Ireland and Lithuania also posting significant gains of 10.1 per cent and 7.6 per cent, respectively.

Fibre2Fashion News Desk (HU)