Summary: Euro-zone industrial production down 2.0% in September, worse than expected; down 2.8% on annual basis; German, French 10-year yields fall; contraction in three of four largest economies.
Following a recession in 2009/2010 and the debt-crisis which flowed from it, euro-zone industrial production recovered and then reached a peak four years later in 2016. Growth rates then fluctuated for two years before beginning a steady and persistent slowdown from the start of 2018. That decline was transformed into a plunge in March and April of 2020 which then took over a year to claw back. Production levels since early 2023 have generally declined.
According to the latest figures released by Eurostat, euro-zone industrial production contracted by 2.0% in September on a seasonally-adjusted and calendar-adjusted basis. The fall was a greater one than the 1.4% decrease and it contrasted with August’s 1.5% rise after revisions. On an annual basis, the contraction rate accelerated from August’s revised rate of 0.1% to 2.8%.
Long-term German and French sovereign bond yields finished lower on the day. By the close of business, the German 10-year bond yield had lost 5bps to 2.34% while the French 10-year yield finished 8bps lower at 3.09%.
Industrial production contracted in three of the euro-zone’s four largest economies. Germany’s production contracted by 2.7% over the month while the comparable figures for France, Spain and Italy were -0.9%, 0.9% and -0.4% respectively.