Eurozone industrial production declined more than expected in February on widespread weakness across sub-sectors, data from Eurostat revealed Wednesday.
Industrial production fell 0.8 percent in February from January, when it grew by revised 1.9 percent. Economists had forecast a 0.7 percent drop. Output for January was revised down from 2.1 percent.
On a yearly basis, industrial output growth eased to 0.8 percent from revised 2.9 percent in January. It was slower than the expected 1.3 percent increase. Nonetheless, production grew for the second straight month.
Despite the strength of industrial output in the first two months of the year, Jack Allen at Capital Economics doubt that the sector will provide a major boost to GDP in 2016 as a whole.
While industry is likely to have had a decent first quarter, this does not change the assessment that the Eurozone's recovery is set to slow, the economist added.
The International Monetary Fund on Tuesday downgraded its growth projection for euro area for this year to 1.5 percent and the forecast for next year to 1.6 percent.
Data today showed that all sub-components of industrial production except intermediate goods declined in February. Output of non-durable consumer goods logged the biggest fall of 1.8 percent, followed by energy, which shrank 1.2 percent.
Output of capital goods and durable consumer goods fell 0.3 percent and 0.4 percent, respectively. Intermediate goods output remained unchanged in February.
Production in the EU28 fell 0.7 percent in February from prior month, while it increased 0.8 percent from last year.
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