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Euro zone industry output declines, showing fading overall growth

Published 05/12/2016, 05:07 AM
Updated 05/12/2016, 05:10 AM
© Reuters. Steel rolls are pictured at the plant of German steel company Salzgitter AG in Salzgitter

BRUSSELS (Reuters) - Euro zone industrial production fell for a second straight month in March, depressed by every sector except energy, the European Union statistics office said on Thursday.

The figures imply that the bloc's overall economic growth, which hit a five-year high of 0.6 percent in the first quarter, tailed off after a very strong opening month.

Industrial production in the 19-member single currency bloc was 0.8 percent lower in March than in February, against the average forecast in a Reuters poll of economists of no change.

Year-on-year, euro zone industrial production rose by 0.2 percent, below the average market expectation of a 1.1 percent increase.

Eurostat also revised down the monthly output figure for February to -1.2 from -0.8 percent, although the year-on-year number went up to a gain of 1.0 from 0.8 percent.

Euro zone March monthly output decreased mostly because of a sharp fall of production of non-durable goods. Production of durable consumer goods, such as fridges, decreased by 0.4 percent and of capital goods, such a machinery, declined by 1.1 percent.

Output of intermediate goods was 0.8 percent lower.

Energy was the only sector with higher production, rising 2.0 percent.

© Reuters. Steel rolls are pictured at the plant of German steel company Salzgitter AG in Salzgitter

The two largest economies of the euro zone saw a drop in their monthly output, in Germany by 1.0 percent, France 0.3 percent. Italian industrial production was unchanged.

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