Euro-Area Production Slump Adds to Gloom for Economic Outlook

(Bloomberg) -- Industrial output in the euro area fell the most in almost three years in November, raising questions over the economy’s ability to regain momentum after a broad-based slowdown.

Production dropped 1.7 percent in November, more than economists predicted, underlining the impact from a range of temporary and structural factors -- from dry weather to softer global demand.

The decline was led by a 2.3 percent drop in capital goods, though output was weaker across all product groups. The largest slump in overall production was recorded in Ireland.

The data come after the European Central Bank stopped adding stimulus for the region’s economy after nearly four years of bond-buying. Governing Council member Francois Villeroy de Galhau said last week that officials should wait until the spring before taking new policy steps amid economic weakness and a fragile international outlook.

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