TAIPEI, Taiwan (Newswire.com) - Manufacturing output at euro zone factories fell for a second straight month in July, surprising analysts at Evans Chamberlain Asset Management who say the decrease in productivity could indicate the beginning of a slowdown for the euro zone’s economy in the third quarter of this year.
Eurostat, the European Union statistics agency, reported that manufacturing productivity in the euro zone decreased by 0.8 percent on a monthly basis in July and 0.1 percent on a yearly basis. This drop was more than the 0.5 percent anticipated by Evans Chamberlain Asset Management analysts.
The greater-than-expected decrease followed a fall of 0.8 percent the month before after Eurostat downwardly revised an initial estimate of 0.7 percent.
Analysts at Evans Chamberlain Asset Management say that while manufacturing output data tends to be somewhat unpredictable, the noticeable downturn in recent figures could be a strong indication of a slowdown in economic growth during the third quarter of this year.
Evans Chamberlain Asset Management analysts say the decreased output could be attributed to a 1.9 percent fall in the manufacturing of durable consumer items, including motor vehicles and refrigerators, which could point to business owners expecting a lower demand for such items as euro zone citizens rein in spending on non-essential goods.
The manufacturing of non-durable consumer items like clothing also decreased, said Evans Chamberlain Asset Management analysts but added that, on a more optimistic note, the manufacture of machinery increased by 0.7 percent on a monthly basis.