Eurozone Industrial Output Unexpectedly Dropped in July For the Second Time

Factory production in the eurozone fell in July for a second successive month, greater than the forecast that will likely decelerate progress growth of the economy in the third quarter based on the reports on Wednesday.

Eurostat data on shows a drop of 0.8 percent on the industry output of the European bloc in July, statistically showing 0.1 percent year-on-year.

It is unexpected for the economists when the forecast is only just a drop of 0.5 percent month-on-month and a 1.0 percent increase than last year, as reflected in the survey by Reuters.

Another 0.8 percent came out in June as revised by the Eurostat on Wednesday compared to the previous figure of 0.7 percent.

The year-on-year data in June was adjusted to 2.3 percent rise from 2.5 percent.

In spite of high volatility in the output data, the industry slowed down in July that could be indicative of weaker economic growth.

The preliminary flash estimate of Eurostat in the third quarter will be published on October 30.

The monthly output was mainly because of the .9 percent drop in the production of durable consumer goods that signal managers lower interest in consumer spending.

On the other hand, the output of non-durable consumer goods such as clothing also declined more than the overall data by 1.3 percent on the month.

On a positive note, the capital good data, such as machinery, rose by 0.7 percent in the month that can be good for future investments.