BRUSSELS, Nov 12 (Reuters) - Euro zone industrial production fell more than expected in September, data showed on Wednesday, underlining beliefs the economy contracted in the third quarter and entered a technical recession.
Production in the 15-country area fell 1.6 percent month-on-month and 2.4 percent year-on-year, the European Union statistics body said. Economists polled by Reuters had expected a 1.3 percent monthly fall and a 0.9 percent annual decrease.
The biggest drop occurred in the production of durable consumer goods, which fell 2.5 percent on the month and 6.7 percent in annual terms, the Eurostat data showed.
Intermediate goods output shrank 2.6 percent against August and 3.5 percent versus the same period a year earlier.
The year-on-year decline in overall production was the fifth in a row.
The euro zone economy shrank 0.2 percent in the second quarter and the European Commission estimates it contracted by 0.1 percent in the third, adding up to two consecutive quarters of negative growth -- a technical recession.
The slowing growth is easing inflationary pressure in the economy and therefore creates room for interest rate cuts by the European Central Bank, the head of the Organisation for Economic Cooperation and Development, Angel Gurria, said.
The ECB has cut interest rates by 100 basis points to 3.25 percent since October. Economists expect more easing, with some forecasting the main ECB refinancing rate at 2.0 percent in mid-2009. (Reporting by Jan Strupczewski; Editing by Dale Hudson)