FRANKFURT, Jan 15 (Reuters) - Euro zone industrial production increased in November as expected, but the growth was insufficient to offset previous declines. According to data from Eurostat released on Wednesday, the new data is unlikely to indicate a significant reversal for a sector now in its second year of recession.
Industrial production in the 20 euro zone countries grew by 0.2% compared to the previous month, following a similar increase in October. The rise was primarily driven by increased production of energy and consumer durable goods.
However, when compared to the same period a year ago, industrial output decreased by 1.9% and remained significantly below the levels before the pandemic. Industry has been deeply impacted by factors such as soaring energy prices, weak demand from Asia, increased competition, and the German automotive sector's struggles to adapt to changing consumption patterns.
Despite fluctuations in monthly production figures, persistently low order numbers, particularly from Germany, the largest economy in the bloc, indicate that a substantial recovery is not imminent, although the sector may be stabilizing.
This ongoing decline is anticipated to push the euro zone into negative growth for the second consecutive year in 2024, likely keeping overall growth below 1%. Among the largest euro zone countries, Germany recorded the most significant drop in industrial output compared to the previous year, while France, Italy, and Spain also reported negative figures.