Monday, 14 January 2013

Euro Area Industrial Production drops 3.5% YoY, Germany down 3.1%

The Industrial Production Index continues to deteriorate in the euro area. Following dismal figures for October 2012, the figures for November 2012 just released by Eurostat (log in required, alternatively go here for the news release) show the industrial production index for the euro area (17 countries) fell by 3.5% on the same month in 2011. This was the 12th consecutive month of YoY percentage decline for the euro area. The current index value of 96.15 was the lowest number reported since April 2010 and 13.5% lower than the highest ever reported (111.15 in April 2008).

Meanwhile, industrial production in Germany also continues to fall, dropping 3.1% on November 2011, to end November 2012 on 108.50, representing the 5th consecutive month of YoY percentage declines. The figures was however slightly better than October 2012.

Industrial production in France and Italy also continue to drop on a YoY basis, with the index for France dropping 3.6% compared to November 2011 and Italy falling 7.0%. This was the 7th and 15th consecutive month of YoY percentage declines for the two countries.

In Spain, things are even worse, with the index as of November 2012 declining 6.4% on prior year with the index falling for the 20th consecutive month on a YoY basis. At an index value of 76.04, it was the lowest figure ever reported based on data going back to January 1999.

All in all, the euro area delivered dismal industrial production figures for the month which have now become the trend. Perhaps more worrying is that industrial production for the largest member countries, Germany, France and Italy, are deteriorating rather rapidly. Together with the increasing unemployment rate across the euro area and increases in debt, the industrial production numbers indicate that the euro area economy is getting worse, not better. 

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