EIndustrial production in the eurozone showed a modest increase in November, as expected, but the gains were insufficient to offset previous losses, and new data suggests that a significant recovery in the sector is unlikely. Eurostat’s data released on Wednesday revealed that production in the 20 eurozone nations rose by 0.2% month-over-month, following a similar increase in October. This growth was primarily driven by higher energy and consumer durable goods production.
However, when compared to the previous year, industrial output declined by 1.9%, remaining well below the pre-pandemic levels. The sector continues to struggle with a prolonged recession, weighed down by rising energy costs, weak demand from Asia, increased competition, and difficulties in Germany’s automotive sector in adapting to changing consumer trends.
Despite monthly fluctuations in production, weak order figures—especially from Germany, the largest economy in the bloc—indicate that a substantial recovery is not yet on the horizon, even though the sector might be reaching its lowest point. This downturn has been significant enough to drag Germany’s overall growth into negative territory for 2024, marking the second consecutive year of contraction, and is likely to have kept eurozone growth well below 1%.
Germany experienced the largest drop in industrial output among the eurozone’s major economies, but France, Italy, and Spain also reported negative figures.
