European industrial output falls 1.9% as manufacturing sector struggles
A technician of the German defense firm Rheinmetall works on 155mm ammunition meant for Ukrainian forces at the facility in Unterluess, Germany, on June 6, 2023. (AFP Photo)
Industrial production in the European Union continues to face challenges, with output declining 1.7% in November 2024 compared to the previous year, according to data released by Eurostat, the EU’s statistical office.
The euro area, comprising 20 member states, experienced an even steeper decline of 1.9% year-over-year, highlighting persistent weakness in the manufacturing sector despite modest monthly gains.
The monthly figures paint a more nuanced picture. Industrial production in the euro area rose by 0.2% in November compared to October, while the broader EU saw a slight uptick of 0.1%, marking the second consecutive month of growth, albeit modest.
Belgium’s industrial production increases by 8.7%, the most in EU
Belgium emerged as a bright spot, recording a remarkable 8.7% monthly increase, followed by Malta at 7.1%. However, several major economies struggled, with Ireland experiencing a significant 5.8% drop and Luxembourg declining by 3.9%.
The sectoral breakdown reveals widespread challenges. Capital goods production, crucial for economic investment, fell by 2.8% in the euro area compared to the previous year. Intermediate goods production decreased by 2.5%, while energy sector output declined by 1.3%.
Some smaller economies managed to buck the trend. Malta posted the strongest annual growth at 13.5%, while Greece saw a 4.8% increase in industrial output compared to the previous year.
The data suggests Europe’s industrial sector continues to grapple with economic uncertainties, even as some individual member states show resilience. The mixed performance across different industrial sectors and countries reflects the complex challenges facing European manufacturers as they navigate through economic headwinds.
