Industrial Production Continues To Fall

Production fell by 0.3% in both the euro area and the EU27 in November 2012 compared with October according to a statistical bulletin from Eurostat. Production had also fallen in October by 1% in the euro area and 0.8% in the EU27. Using the annual comparison, industrial production fell by 3.7% in the euro area and by 3.3% in the EU27.

Looking at the main components of the monthly index energy production fell by 1.6% in the euro area and 0.7% in the EU27. Durable consumer goods production fell by 1.1% in the euro area and by 1.4% in the EU27, non-durables fell by 1.2% in both zones. Intermediate goods fell by 0.3% and 0.4% respectively. Capital goods was the only component part to show any growth. There was 0.7% growth in capital goods production in the euro area and 0.5% in the EU27.

Over the year to November 2012 durables fell by 7.7% in the euro area and 6.8% in the EU27, non-durables by 3% and 2.7% respectively. Intermediate goods production fell by 4.8% and 4.3% respectively. Capital goods fell by 4.4% in the euro area and 3.7% in the EU27 but energy production increased by 0.5% in the euro area but fell in the EU27 by 0.6%.

Slight Increase In Industrial Producer Prices

The industrial producer price index went up by 0.1% in August in the euro area compared with July 2010 and was unchanged in the EU27. Compared with August 2009, industrial producer prices increased by 3.6% in the euro area and 3.9% in the EU27.

In both zones, over the month prices for intermediate goods increased by 0.4%, by 0.2% for non-durable consumer goods and 0.1% for durables. Capital goods decreased by 0.1% in the euro area and were unchanged in the EU27. Energy prices decreased by 0.4% and 0.7% respectively.

If August 2009 prices are compared with August 2010 prices total industry prices (excluding energy) increased by 2.2% in the euro area and 2.4% in the EU27. Energy prices increased by 7.5% in the euro area and 7.6% in the EU27. Durables increased by 1.1% and 1.4% respectively, non-durables by 0.4% and 0.7% respectively. Prices for intermediate goods rose by 4.7% in both zones. Capital goods increased by 0.5% in the euro area and 0.9% in the EU27.

Low Production Figures But Non-Durables Up

The index of production for the first quarter saw a 5.3% decrease quarter on quarter and 12.1% decrease on the first quarter of 2008. Manufacturing was 5.5% lower and electricity, gas and water decreased 3.5% on the previous quarter. Manufacturing also showed the lowest rate of decline for 13 consecutive months with a 0.1% decrease between February and March. The March index was 88.0.

In the main industrial groups output of durable goods fell 8.0% on previous quarter, consumer non-durable goods went up 0.3% on February, capital itmes were 8.9% lower and intermediate goods and energy 6.6% lower than last quarter. Other significant falls included machinery and equipment.