Commentary Directory
- Q1 GDP Growth Jumps 1.1% on Strong Personal Consumption
- A Strong March Leads to a Surge in Chinese GDP in Q1 2023
- Durable Goods Retail Sales Suffer from High Interest Rates and Wary Consumers
- Choppy GDP Means UK Should Avoid Q1 Recession
- Japanese Consumer Confidence Jumps to Highest Level in Over a Year
- The End of Summer Sees the End of Disinflation in Europe
- Labor Market Indicators are Starting to Unify on Easing in Hiring
- Inflation and Tight Financial Conditions Weigh on the German Consumer
- Euro Area Money Supply Contracts for the First Time Since 2010
- Dismal Economic Data Out of Germany
- Core Durable Goods New Orders See Gentle Uptrend in July
- More UK Data Pointing to Q3 Decline
- Whispers of a UK Contraction in Q3
- Japan's Core Inflation Resumes Uptrend in July
- Early July Economic Data Leads to a Sharp Increase in Q3 Growth Expectations
- UK CPI: Energy Inflation Crashes but Services Inflation is Still Sticky
- China's Weak Start to Q3 Means More PBoC Easing
- Bank of Japan is Too Optimistic on Inflation
- The Bank of England Pauses in a Near Split Decision
- UK Inflation August Update: A Precursor to the Bank of England's Announcement
- Housing Starts Tumble in August Amid Rising Mortgage Rates
- US Retail Sales Grow at Fastest Monthly Rate Since the Start of the Year
- US Consumer Prices Surge in August Driven by Energy Costs
- August NFIB Survey Showed a Tough Environment for Small Businesses
- All Signs Point to a Weaker Labor Market in August
- Thoughts on GME and This Week in the Stock Market
- Record Home Price Levels Point to Strength in Post-Pandemic Economy
- The Stock Market Looks Overvalued, but It's Probably Not
- China GDP Growth Surpasses Expectations
- President-elect Joe Biden Introduces His "American Rescue Plan"
- Political Polarization Intensifies with Another Impeachment Along Party Lines
- Metal Demand Has a Bright Future in 2021 and Beyond
- What Happened to That US-China Trade Dispute?
- Civil Unrest, A Rising Threat to the 2021 Economy
- What's in the $900 Billion Relief Plan?
Euro Area Industrial Production: July 2023
Jacob Hess
September 13, 2023
- EconoBrief
- Euro Area
Euro Area Industrial Production
9/13/2023 (July 2023)
-1.1% MoM (-2.2% YoY)
Below Expectations
Highlights
| Capital Goods Production | -2.7% MoM (0.4% YoY) |
| Durable Goods Production | -2.2% MoM (-6.7% YoY) |
Euro area industrial production fell -1.1% MoM and -2.2% YoY in July, a sharp decline compared to the 0.4% MoM increase in June. Sharp declines in capital goods (-2.7% MoM) and durable goods (-2.2% MoM) production offset slight gains in intermediate goods production (0.2% MoM) and non-durable goods production (0.4% MoM). Interestingly, the big decliners on the month have starkly different annual declines with capital goods production still up 0.4% YoY and durable goods production down -6.7% YoY.
Industry is now heavily running against growth in Europe. For about a year now, production was volatile as inflationary pressures, especially energy costs, created a complicated environment for manufacturing. Though those pressures have eased to an extent, rising interest rates is now having a clear impact on manufacturing firms and their expectations of demand. This is especially the case for durable goods producers which are likely anticipating a deterioration in demand for expensive goods as credit becomes more expensive. This reaction will put downward pressure on Q3 growth.
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