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Eurozone industrial production declined for the first time in four months in July driven by the deterioration in capital goods and durable consumer goods output, data from Eurostat showed on Wednesday.
Industrial output fell 1.1 percent on a monthly basis in July, in contrast to the 0.4 percent rise in June.
This was the first fall since April and also the biggest decline since March, when output was down 4.5 percent. Moreover, the rate was bigger than the expected 0.7 percent decline.
The monthly fall in production reflects a 2.7 percent decrease in capital goods output and a 2.2 percent fall in durable consumer goods output. Partially offsetting these declines, energy output grew 1.6 percent and intermediate goods output rose 0.2 percent. Output of non-durable consumer goods moved up 0.4 percent.
On a yearly basis, the decline in industrial output accelerated to 2.2 percent in July from 1.1 percent in June.
Industrial production in the EU27 posted a monthly fall of 1.1 percent in July, taking the annual fall to 2.4 percent, data showed.
Among the member states of EU, Denmark, Ireland and Lithuania showed the largest monthly decreases. Meanwhile, the highest increases were observed in Sweden, Malta and Hungary.
Capital Economics' economist Bradley Saunders said industrial production will continue to do so over the remainder of the year in the face of weakening demand. The economist said weak industrial production will help to push the euro area into a recession later this year.
