Industrial production weakened more than expected in March, according to Eurostat

Industrial output in the Eurozone suffered a significant decline of 4.1% month-over-month in March, below market expectations, data from the statistics office Eurostat showed on Monday. 

In annual terms, the figure was down by 1.4%. Industrial production throughout the EU saw a 1.3% year-on-year fall and 3.6% monthly drop.

The decline was the most substantial since the pandemic-induced plunge. The downturn was driven by a sharp decrease in the production of capital goods, such as buildings and equipment used to make products and provide services, which nosedived 15.4%. Output also declined for intermediate goods (by 1.8%), energy (0.9%) and non-durable consumer goods (0.8%).

According to Eurostat, most major economies in the bloc using the euro currency posted significant declines, with Ireland having suffered the worst monthly output plunge of 26.3%. Germany’s industrial production declined by 3.1%, while France and Italy saw drops of 1.1% and 0.6%, respectively. Spain, meanwhile, was a rare relative bright spot, with industrial production growth of 1.4%.

READ MORE: Eurozone inflation rising

Economists have been raising concerns, warning that for the months ahead the outlook for industry looks dim, as weaker demand is offsetting the effect of lower energy costs for energy-intensive industries.

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