Industrial output in the euro zone dropped in April, hit particularly by falling car production, adding to concerns of a prolonged slowdown in the region that may in turn apply pressure on the central bank.
Monthly output dropped 0.5 per cent, compared with March, the regional statistics office said on Thursday, in line with a Reuters poll of analysts. The Eurostat March figure showed a decline of a revised 0.4 per cent.
“While volatile and not in itself a justification for more expansionary monetary policy, these numbers are a confirmation of a continued slowdown in the manufacturing sector which poses a threat to GDP growth if it continues for long enough,” said Bert Colijn, a senior economist at ING.
April car production in the 19-country bloc that uses the euro fell 4.1 per cent against the previous monthly figure, dragging manufacturing down 0.8 per cent. Output has been suffering since…
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