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Euro zone Sept industrial output much stronger than expected
Published by Jessica Weisman-Pitts
Posted on November 14, 2022
2 min readLast updated: February 3, 2026
Global Banking & Finance Review®
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Published by Jessica Weisman-Pitts
Posted on November 14, 2022
2 min readLast updated: February 3, 2026
BRUSSELS (Reuters) -Euro zone industrial production rose much more than expected in September, and output for August was revised upwards too, data showed on Monday, although economists said that may be partly due to manufacturers front loading production before energy-related disruptions this winter.
The stronger than expected industrial production helps explain why the euro zone still managed to grow 0.2% quarter-on-quarter in the July-September period, despite strong headwinds from soaring energy prices and rising interest rates.
The European Union’s statistics office Eurostat said industrial output in the 19 countries sharing the euro rose 0.9% month-on-month in September for a 4.9% year-on-year gain.
Economists polled by Reuters had expected a 0.3% monthly rise and a 2.8% annual increase.
The data for August was revised upwards to a rise of 2.0% on the month and 2.8% year-on-year from 1.5% monthly and 2.5% year-on-year previously.
“Back-to-back increases in production paint a misleading picture of prospects for the eurozone industrial sector,” said Ken Wattret, economist at S&P Global Market Intelligence.
“Possible explanations for the current divergence of surveys and hard data include production having been brought forward in anticipation of energy-related disruptions during the winter – increasing the likelihood of sharp declines in production going forward,” he said.
“The most forward-looking aspects of our PMIs, including new orders and future production expectations, remain indicative of recession,” he said.
The European Commission expects the euro zone economy will contract in the last three months of the 2022 and in the first quarter of 2023.
(Reporting by Jan Strupczewski; Editing by Susan Fenton)
Energy prices refer to the cost of energy sources such as oil, gas, and electricity. Fluctuations in these prices can significantly impact economic conditions.
Gross Domestic Product (GDP) is the total monetary value of all goods and services produced within a country's borders in a specific time period. It is a key indicator of economic performance.
Interest rates are the cost of borrowing money, expressed as a percentage of the amount borrowed. They influence economic activity by affecting consumer spending and business investment.
Economic growth is the increase in the production of goods and services in an economy over a period of time, typically measured by GDP.
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