While the economy expanded by 0.4 percent in the second quarter,
above expectations of 0.3 percent growth, industrial output in
the in 19-country currency bloc fell sharply in June driven by a
collapse in machinery and equipment investment, Eurostat said in
a separate release on Tuesday.
Eurostat's flash estimate of a 0.4 percent growth on the quarter
was higher than its previous estimate of 0.3 percent growth. The
agency also revised up the year-on-year growth to 2.2 percent
from its previous 2.1 percent estimate.
Economists polled by Reuters had expected a 0.3 percent
quarterly expansion and a 2.1 percent year-on-year rise.
Eurostat's upward revision comes after Germany, the bloc's
largest economy, recorded a better-than-expected 0.5 percent
expansion in the second quarter, driven by consumption and state
spending that could signal the beginning of a shift from
Germany's export-led economic model.
But in a separate release, Eurostat said on Tuesday the bloc's
industrial output fell by 0.7 percent in June on the month,
recording a larger drop than expected by economists polled by
Reuters who had forecast a 0.4 percent fall.
Germany's monthly output was down by 0.6 percent in June after a
2.4 percent growth in May, Eurostat said.
The euro zone's highly volatile industrial production had
expanded by 1.4 percent in May, Eurostat said, revising up its
previous estimate of 1.3 percent growth.
The production plunge was mostly driven by a 2.9 percent drop in
the output of capital goods, like machinery, in a sign that
firms may be preparing for slower growth in the coming months.
The output of consumer and intermediate goods also fell, while
the production of energy increased by 0.5 percent from May.
On the year, industry output was up by 2.5 percent in June, and
the May figure was revised up to 2.6 percent from a previous
estimate of a 2.4 percent increase.
(Reporting by Francesco Guarascio; editing by Robert-Jan
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