Euro Region Started Third Quarter With More Industrial Malaise

(Bloomberg) --

The euro region’s industrial woes persisted at the start of the third quarter as a German factory slump dragged down output more than economists predicted.

Production fell 0.4% in July, deepening a decline from the previous month. The drop was led by Germany, Europe’s biggest economy, which is suffering the most in the region as a global slowdown in trade hurts its exporters.

The data provide yet more evidence of a slowdown for European Central Bank policy makers to ponder as they prepare stimulus to be delivered on Thursday in Frankfurt. Economists anticipate an interest-rate cut, and a resumption of quantitative easing.

From a year earlier, output dropped by 2%, similar to the drop in June. The data now show an annual production decline in every month since last November.

--With assistance from Kristian Siedenburg.

To contact the reporter on this story: Craig Stirling in Frankfurt at cstirling1@bloomberg.net

To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Zoe Schneeweiss

©2019 Bloomberg L.P.