Brussels (Brussels Morning) Industrial production in the eurozone exceeded expectations in November last year, growing 2.5% compared to October and dropping 0.6% on the annual level, according to Eurostat records released on Wednesday.
Economists who took part in a Reuters poll predicted monthly growth of 0.2% and annual decline of 3.3%.
Commenting on the effects of the coronavirus pandemic, ING Bank’s eurozone economist Bert Colijn pointed out that the “industry continues to recover from the first wave, despite all of the second-wave problems that the economy is currently facing.”
He stressed that industrial production in the eurozone is less than 1% below levels from before the coronavirus crisis, describing this as a remarkable feat. Colijn added that, for now, industrial production is counterbalancing negative economic effects of the second wave of coronavirus infections in the eurozone.
Ireland topped the list of eurozone members with regard to monthly growth of industrial production in November, followed by Germany, while output dropped in France, Italy, Spain and the Netherlands.
Compared to October, production of capital goods increased 7%, followed by intermediate goods with 1.5%, which cushioned monthly declines in production of energy as well as durable and non-durable consumer goods, of 3.9%, 1.2% and 1.7%, respectively.
Positive investment trend indicators
On the annual level, production of capital goods increased 0.1% in November, following a decline of 8% in October, while production of intermediate goods recovered 1.1% after an October drop of 0.9%. While only production of capital goods and intermediate goods saw growth on the annual level, they are indicators of investment trends.
Annual growth of industrial production in November was highest in Ireland, followed by Greece, Poland, Latvia and Slovakia. On the other hand, decline was steepest in Bulgaria, followed by France, Italy, Germany, Spain and Portugal.
On the level of the EU, seasonally adjusted industrial production increased 2.3% in November, following growth of 2% in October.