Eurozone year-on-year industrial production dropped in May, falling into negative territory for the first time this year and coming well below analysts' expectations, Eurostat data showed today.
May industrial production in the 12-nation euro area fell 0.1 per cent from a year earlier against a revised 1.1 per cent rise in April. Analysts expected average output to grow 1.1 per cent on a year-on-year basis.
"The data is much weaker than expected," said Mr David Naude, senior euro area economist at Deutsche Bank in Paris.
"This is just a confirmation that the slowdown in Europe continues and that we haven't touched the bottom yet."
The decline in industrial output was led by a sharp fall in durable consumer goods, which fell 5.1 per cent year-on-year, the European Union's statistical institute said.
Analysts said they were a bit puzzled by the data, which seemed not to reflect entirely recent national data.
"We tend to focus on the weighted average of the national figures rather than using the Eurostat figures," said Mr Robert Prior-Wandesforde, economist at HSBS Securities in London.
"[But] we all know it's weakening and we all know that the Euroland industrial sector is heading for a reasonably severe recession," he said.
Data for the 15-nation European Union showed May industrial production fell 0.5 per cent year-on-year and 0.2 per cent on a monthly basis.