Eurozone economic rebound hopes hit by factory output slump
Jan 14, 2019 (Agencia EFE via COMTEX) —
Madrid, Jan 14 (efe-epa).- Eurozone factory output slumped in November, recording its largest annual decline in six years and suggesting that economic growth hasn’t rebounded from a disappointing third quarter, according to a report from Dow Jones Newswires supplied to EFE on Monday.
The currency area’s industrial sector boomed in 2017 as exports soared, but slowed sharply in 2018 as overseas demand weakened. The November figures suggest the sector is on track for a second straight quarter of declining output, which would leave it in a technical recession.
The European Union’s statistics agency on Monday said industrial production was down 1.7 percent in November – the largest month-to-month fall since February 2016. The decline was surprisingly large, with economists surveyed by The Wall Street Journal last week having forecast a drop of 1.3 percent.
But the November drop wasn’t an isolated development. Output slipped in seven of the first 11 months of last year, leaving it 3.3 percent lower in November than in the same month of 2017. That’s the largest year-to-year decline since November 2012, when the eurozone economy was in a long recession caused by its intertwined government debt and banking crises.
The sag in output hit most eurozone members, with Germany seeing a drop of 1.9 percent, France a decline of 1.3 percent, and Italy and Spain both recording falls of 1.6 percent.
Production of capital goods – or equipment used to make other goods – deteriorated the most, posting a 2.3% percent drop that suggests businesses both at home and overseas may be cutting back on investment, the Dow Jones report added.
The eurozone’s economy grew at the slowest pace since early 2013 during the three months