Euro Area Output Decelerates; French Economy Stagnates

Arthi Gupta
12 Aug, 2011
New York City

Euro area industrial output decelerated in June. French economy remained flat but payroll employment rose in the second quarter. Spain inflation slowed to 3.1% in July. Hungary industrial output slowed and Italian deficit narrowed in June.

[R]1:30 PM Frankfurt – Euro area industrial output decelerated in June. French economy remained flat but payroll employment rose in the second quarter. Spain inflation slowed to 3.1% in July. Hungary industrial output slowed and Italian deficit narrowed in June.[/R]

Euro Area Output Slackens

Industrial production in the euro-zone increased 2.9% on an annual basis in June, slower than the 4.4% growth recorded in May, which was revised up from 4%, data released by Eurostat showed today.

On a monthly basis, industrial output decreased 0.7% in June, reversing the 0.2% increase in May, which was revised up from 0.1%.

In EU27, industrial production rose 1.7% from a year ago in June as against the 4.4% advance in May.

Production fell 1.2% monthly in EU27 in June compared to a 0.2% increase in May.

Hungary Output Slows

Hungary''s industrial production increased a working-day adjusted 1% from a year ago in June compared to the 2.3% rise in May, data released by the Central Statistics Office showed on Friday.

On a monthly basis, industrial output decreased a seasonally and working-day adjusted 0.6% in June as against the 0.7% fall in May.

French Economy Flat, Payroll Up, Inflation Eases

France''s Gross Domestic Product remained flat on a sequential basis in the second quarter after expanding 0.9% in the first quarter, according to a report released by the statistics office Insee today.

Households spending fell 0.7% in the second quarter. Imports fell 0.9% in the second quarter reversing the 1.3% gain in the first quarter. Exports also stagnated in the second quarter after a 1.8% rise in the first quarter.

Also, French payroll employment increased 0.4% or 68,300 in the second quarter from the first quarter, the statistics office Insee said.

On a yearly basis, overall payroll employment in principal market sectors rose 1.3% in the second quarter.

Separately, French consumer price inflation slowed to 1.9% annually in July from 2.1% in June, data released by statistics office Insee showed.

On a monthly basis, consumer prices dropped 0.4% in July.

Greece Economy Contracts

The Greek gross domestic product fell 6.9% from a year ago in the second quarter after declining by a revised 8.1% in the previous quarter, flash estimate from the Hellenic Statistics Authority showed today.

Spain CPI Eases

Spain’s overall consumer price inflation slowed to 3.1% in July from 3.2% in June. Inflation slowed for a third month in a row.

The CPI also extended its monthly decline to a second month. The consumer price index dropped 0.5% in July, following the 0.1% decline in June.

Dutch Trade Surplus Declines

The Dutch trade surplus decreased in June from a month ago, according to data published by Statistics Netherlands today.

Exports climbed 4% from a year ago in June to €33.4 billion and imports rose 2% to €30.1 billion. The trade balance resulted in €3.3 billion surplus, which was €0.8 billion higher than in June 2010. But it fell from €3.4 billion surplus logged in May.

Italian Deficit Narrows

Italy''s merchandise trade deficit narrowed to €1.8 billion in June from €3.2 billion in the same period last year, data released by statistics office Istat showed.

Exports increased 8.1% and imports advanced 3.2% from a year ago in June.

Norway Retail Sales, Factory Orders Rise

Norway''s retail sales grew 1% in June from a year ago compared to revised 6.8% rise in May, the Statistics Norway said on Friday.

In another report, new orders received by Norwegian manufacturers surged 41% from a year ago in the second quarter. New orders in the domestic market soared 67.9% annually, while export market orders rose 24%.