"Industrial output in the 17 countries that share the euro fell sharply in October, a development that raises fresh questions about the sustainability of the currency area's return to economic growth.
The European Union's statistics agency said industrial production was 1.1% lower than in September, the second straight month of decline and the sharpest drop since September 2012.
The European Union's statistics agency said industrial production was 1.1% lower than in September, the second straight month of decline and the sharpest drop since September 2012.
The decline in output came as a surprise, with 24 economists surveyed by The Wall Street Journal last week having estimated that output rose by 0.2% during the month. It raises the possibility that the euro zone's return to growth may come to a halt in the final quarter of this year, having already weakened in the third quarter.
The decline in industrial output was led by the energy sector, which recorded a 4% drop in production during October. That wasn't a great surprise, given that temperatures across Europe were higher than usual during that month. However, output of capital goods fell by 1.3%, while output of consumer durables fell by 2.4% and of non-durables by 0.9%.
That suggests the drop in production was a response to weak demand from businesses and consumers. Figures released last week showed retail sales in the euro zone fell in October, while a November survey of consumers recorded the first decline in confidence this year.
The euro-zone economy returned to growth in the three months to June, having contracted in each of the previous six quarters. But having expanded by 0.3% in the second quarter, it grew by just 0.1% in the third".
Source: the Wall Street Journal
