Summary: Euro-zone industrial production down 0.1% in June, contrasts with expected gain; down 3.9% on annual basis; German, French 10-year yields unchanged; expansion in all 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 0.1% in June on a seasonally-adjusted and calendar-adjusted basis. The fall contrasted with the 0.5% increase which had been generally expected but it was not as large May’s 0.9% drop after revisions. On an annual basis, the contraction rate accelerated from May’s revised rate of 3.3% to 3.9%.
Long-term German and French sovereign bond yields both finished unchanged on the day. By the close of business, the German 10-year bond yield had returned to its starting point at 2.19% as did the French 10-year yield at 2.92%.
Despite the overall contraction, industrial production expanded in all of the euro-zone’s four largest economies. Germany’s production rose by 1.6% over the month while the comparable figures for France, Spain and Italy were 0.7%, 0.4% and 0.5% respectively.