Eurozone industrial production hits growth outlook

 
Chris Papadopoullos
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Lower production may hit economic growth, analysts suggested (Source: Getty)

The Eurozone's growth prospects have been dented slightly after industrial production posted a drab performance in the month of June.

Industrial production – which is mostly composed of the manufacturing sector, but also mining and quarrying – was 0.4 per cent lower in June than in May, according to figures released by Eurostat today.

It has declined 0.3 per cent in the three months to June compared with the first three months of the year.

The Eurozone economy grew by 0.4 per cent in the first three months of the year. Economists said the industrial production figure may mean slightly lower growth in the three months to June.

Jessica Hinds, from Capital Economics, is predicting 0.2 per cent growth, while Morgan Stanley anticipates a 0.3 per cent expansion.

However, the slowdown is expected to be temporary, with loose monetary policy set to support growth for the next year.

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