AIRLINK 69.92 Increased By ▲ 4.72 (7.24%)
BOP 5.46 Decreased By ▼ -0.11 (-1.97%)
CNERGY 4.50 Decreased By ▼ -0.06 (-1.32%)
DFML 25.71 Increased By ▲ 1.19 (4.85%)
DGKC 69.85 Decreased By ▼ -0.11 (-0.16%)
FCCL 20.02 Decreased By ▼ -0.28 (-1.38%)
FFBL 30.69 Increased By ▲ 1.58 (5.43%)
FFL 9.75 Decreased By ▼ -0.08 (-0.81%)
GGL 10.12 Increased By ▲ 0.11 (1.1%)
HBL 114.90 Increased By ▲ 0.65 (0.57%)
HUBC 132.10 Increased By ▲ 3.00 (2.32%)
HUMNL 6.73 Increased By ▲ 0.02 (0.3%)
KEL 4.44 No Change ▼ 0.00 (0%)
KOSM 4.93 Increased By ▲ 0.04 (0.82%)
MLCF 36.45 Decreased By ▼ -0.55 (-1.49%)
OGDC 133.90 Increased By ▲ 1.60 (1.21%)
PAEL 22.50 Decreased By ▼ -0.04 (-0.18%)
PIAA 25.39 Decreased By ▼ -0.50 (-1.93%)
PIBTL 6.61 Increased By ▲ 0.01 (0.15%)
PPL 113.20 Increased By ▲ 0.35 (0.31%)
PRL 30.12 Increased By ▲ 0.71 (2.41%)
PTC 14.70 Decreased By ▼ -0.54 (-3.54%)
SEARL 57.55 Increased By ▲ 0.52 (0.91%)
SNGP 66.60 Increased By ▲ 0.15 (0.23%)
SSGC 10.99 Increased By ▲ 0.01 (0.09%)
TELE 8.77 Decreased By ▼ -0.03 (-0.34%)
TPLP 11.51 Decreased By ▼ -0.19 (-1.62%)
TRG 68.61 Decreased By ▼ -0.01 (-0.01%)
UNITY 23.47 Increased By ▲ 0.07 (0.3%)
WTL 1.34 Decreased By ▼ -0.04 (-2.9%)
BR100 7,394 Increased By 99.2 (1.36%)
BR30 24,121 Increased By 266.7 (1.12%)
KSE100 70,910 Increased By 619.8 (0.88%)
KSE30 23,377 Increased By 205.6 (0.89%)
Business & Finance

Euro zone November industrial production better than expected

  • The European Union's statistics office, Eurostat, said industrial output in the 19 countries sharing the euro rose 2.5% in November against October for a 0.6% year-on-year decline.
  • Industry continues to recover from the first wave, despite all of the second-wave problems that the economy is currently facing.
Published January 13, 2021

BRUSSELS: Euro zone industrial production was much higher than expected in November, data showed on Wednesday, thanks to a rebound in the output of intermediate and capital goods that bode well for investment later in 2021.

The European Union's statistics office, Eurostat, said industrial output in the 19 countries sharing the euro rose 2.5% in November against October for a 0.6% year-on-year decline.

Economists polled by Reuters had expected a modest 0.2% monthly rise and a 3.3% annual fall, as the euro zone economy grapples with the second wave of the COVID-10 pandemic.

"Industry continues to recover from the first wave, despite all of the second-wave problems that the economy is currently facing. At the moment, production is less than one percent below pre-coronavirus levels, which is a remarkable feat in and of itself," said Bert Colijn, euro zone economist at ING bank.

"For now ... industry has turned out to be the euro zone's dark horse, cushioning the fourth-quarter blow from the second wave (of the COVID-19 pandemic) substantially," Colijn said.

Ireland was the clear outlier, with a 52.8% surge in industrial output in the month, which the Irish statistics office said was caused by revisions of seasonal adjustment models because of the COVID pandemic. Production also rose in Germany, but was down in France, Italy, Spain and the Netherlands.

The better-than-expected result was mainly due to a 7.0% monthly increase in output of capital goods and a 1.5% monthly rise in intermediate goods, which helped offset falls in the production of energy and durable and non-durable consumer goods.

Also year-on-year, capital goods production rose 0.1% in November after an 8% year-on-year slump in October. Intermediate goods output was up 1.1% after a 0.9% fall in October.

Intermediate and capital goods often give early indications of investment trends.

"Especially encouraging was the strong surge in capital goods production ... While investment has been very weak over the course of 2020, this is an encouraging sign for the end-of-year performance," Colijn said.

Comments

Comments are closed.