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Eurozone industrial output plunges in May

by ChemOrbis Editorial Team -
  • 13/07/2016 (16:44)
According to media reports, despite signals of an economic recovery in the previous month, Eurozone industrial output plunged in May. The Eurozone’s industrial production has been up and down in recent months displaying volatility across the 19 countries. Industrial production of factories, mines and utilities decreased in the last quarter of 2015, but had increased significantly during the first quarter of this year before slumping again in May.

The U.K.’s decision to leave the European Union on June 23 caused uncertainty and prior to this, expectations for the second quarter were already towards slowing growth.

According to the announcement from the EU’s statistics agency obtained on Wednesday, industrial production outpaced the earlier estimate of a 0.8% decline and plunged by 1.2% in May compared to April. Compared to May 2015, industrial output increased only slightly by 0.5%.

Economists mostly forecast that the Eurozone economy expanded around 0.3-0.4% for the quarter ending in June after witnessing an expansion of 0.6% in the first quarter.

In the upcoming months, a further slowdown is expected. According to ECB President Mario Draghi’s forecasts, since the UK is the second largest export market in the zone after the US, and a very important currency partner for the union, the UK’s decision to leave the European Union will affect economic growth by decreasing around 0.5% within three years.
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