The European statistics office Eurostat released data on industrial production in the eurozone for January this morning, showing that industrial production in the bloc contracted at the highest rate in four months.
According to the data, industrial production in the eurozone shrank by 1.1% in January compared to the previous December, which was less than market expectations that had predicted a contraction of 0.6%. The previous reading for December showed a growth of 0.4% in the volume of industrial production in the region, having been revised up from a growth of 0.2%.
On a yearly basis, industrial production in the eurozone contracted by 2.0% in January compared to January of the previous year, which was better than market expectations that anticipated a contraction of 3.1%. The previous reading for December showed a contraction of 1.8% in industrial production, having been positively revised from a deeper contraction of 1.9%.
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 linked to consumer conditions such as employment levels and profits.
