Eurozone industrial production falls sharply in December
By Abigail Townsend
Date: Thursday 13 Feb 2025
(Sharecast News) - The Eurozone's ailing manufacturing sector ended 2024 on the back foot, official data showed on Thursday, after industrial production fell by more than expected.
According to first estimates from Eurostat, the statistical office of the European Union, industrial production fell by 1.1%, reversing November's 0.4% uplift. Analysts had expected a smaller 0.6% decline in the single currency bloc.
Dragging the numbers lower was a 2.6% slump in capital goods and a 1.9% fall in intermediate goods, which helped offset a 5.1% jump in non-durable consumer goods.
Among individual member states, Belgium recorded the biggest decline, down 6.8%.
But there was also a heavy fall in manufacturing-reliant Germany, Europe's biggest economy, of 2.9%. France and Italy fell 0.4% and 3.1% respectively.
Spain, however, bucked the trend with a 1.4% uplift.
Across the wider EU, industrial production fell by 0.8% in December.
Bert Colijn, senior Eurozone economist at ING, said: "The December decline exceeded expectations, yet aligns seamlessly with the recessionary trend that the industry has experience for nearly two years.
"For the moment, it is difficult to see what could drive a swift turnaround for manufacturing production. We are looking for further reductions of inventories, lower interest rates and stronger domestic consumption towards the second half, but don't expect too much support for stronger production in the coming months."
Over the year as a whole, industrial production was estimated to have fallen by 1.7% in the Eurozone, and by 2.0% in the wider bloc.
Europe's industrial sector has been hit hard in recent years. As well as Russia's invasion of Ukraine forcing up energy prices to record highs, it has faced surging inflation, stiff competition and weaker demand, especially in China.
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