Eurozone industry, May 2022

Industrial production rose 0.8% mom on a seasonally adjusted basis in May, outpacing a 0.5% rise in April. The May result reflected faster growth in the production of capital, sustainable and unsustainable consumer goods, offsetting the decline in energy production. At the same time, the production of intermediate goods did not change compared to the previous month.

Looking at the individual countries for which data are available, industrial production increased in ten countries and declined in eight. Looking at the most important economies, production increased in Germany while it declined in Italy, France, the Netherlands and Spain.

On an annualized basis, industrial production rose 1.6% in May, compared with a 2.5% fall in April. Finally, the average annual growth of industrial production slowed down to 3.1% from 3.6% in April.

Commenting on the outlook, Bert Colein, senior economist at ING, said:

“The eurozone economy is slowing rapidly, and this is most noticeable in manufacturing, according to a monthly survey. The PMI indicates that new orders are already easing and that supply chain problems continue to reduce the productivity that businesses can achieve if orders are still coming in. Therefore, in the coming months, we expect the weakness to weigh more heavily on manufacturing data.”

Overall, our experts forecast industrial production growth of 3.3% in 2022, up 0.1 percentage point from last month’s forecast. In 2023, experts predict an increase in industrial production by 3.0%.