The European statistics office Eurostat released industrial production data for the Eurozone for December this morning, Wednesday. The data revealed that industrial production in the region contracted at the largest rate since May 2023.
According to the incoming data, industrial production grew by 0.2% in December compared to the previous October, which was lower than market expectations that predicted a growth of 0.3% in industrial production in the Eurozone. The previous reading for November recorded a growth rate of 0.2% in the volume of industrial production for the region, after being revised from 0%.
On a year-on-year basis, industrial production contracted by 1.9% in December compared to December of the previous year, which was in line with market expectations that predicted a contraction in industrial production in the Eurozone by the same rate. The previous reading for November recorded a contraction of 1.1%, positively revised from a deeper contraction of 1.2%.
The industrial production index is considered one of the key indicators for measuring economic activity within the Eurozone, as production reacts quickly to the ups and downs in the business cycle, and is associated with consumer conditions such as employment levels and profits.
