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Euro zone output plunges by a fifth y/y in March

Published 05/13/2009, 05:01 AM
Updated 05/13/2009, 05:08 AM

BRUSSELS, May 13 (Reuters) - Euro zone industrial output plummeted by more than a fifth year-on-year in March, data showed on Wednesday, setting a new record and pointing to a sharp contraction in first-quarter economic growth.

Industrial production in the 16 countries using the euro fell 2.0 percent month-on-month and 20.2 percent year-on-year. Economists polled by Reuters had expected a 1.0 percent monthly decline and an 18.0 percent year-on-year drop.

Eurostat also revised down production data for February to a monthly fall of 2.5 percent from the initially reported decline of 2.3 percent and, in year-on-year terms, to a plunge of 19.1 percent from 18.4 percent.

The data bodes ill for first-quarter euro zone gross domestic product, an estimate of which is due on Friday, and which the European Commission expects to have contracted by a record 2.1 percent quarter-on-quarter after dipping 1.6 percent in Q4.

Industry accounts for around 17 percent of euro zone GDP.

The production drop was the result of a 27 percent annual fall in the output of intermediate goods and drops of more than 23 percent in the output of capital and durable consumer goods.

On a monthly basis, intermediate goods output fell 3.1 percent, durable consumer goods declined 2.5 percent and energy output dropped 2.8 percent. (Reporting by Jan Strupczewski, editing by Dale Hudson)

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