European Industrial Production Plummeted in March

Industrial production in the EU fell in March, the first month of the Russian invasion of Ukraine, the most significant decline in just over a year, while in Croatia and the eurozone it recorded the largest drop since the beginning of the pandemic, Eurostat data showed on Friday.

At the EU level, seasonally adjusted industrial production decreased by 1.2 percent in March compared to the previous month when, according to Eurostat data, it rose by 0.6 percent. This decline is the strongest since February last year.

In the eurozone, it plummeted by 1.8 percent, the most significant drop since April 2020 when governments imposed strict lockdown measures to curb the spread of the coronavirus. In February, it increased by 0.5 percent.

The production of capital goods fell the most in both areas in March, by 2.6 percent in the EU and by 2.7 percent in the eurozone.  The production of intermediate goods also sharply declined, by 1.4 percent in the EU and by two percent in the eurozone.

Conversely, the production in the energy sector increased the most in the EU by 1.3 percent, while it fell by 1.7 percent in the eurozone. In the area of the common euro currency, only the production of durable consumer goods increased, by 0.8 percent.

Croatia Alongside Austria

Among the EU countries for which the European statistical office had data, the largest monthly decline in production in March was recorded by Slovakia and Germany, at 5.3 and 5.0 percent, respectively. Luxembourg also saw a sharp decrease, by 3.9 percent.

In Croatia, seasonally adjusted industrial production fell by 2.6 percent in March on a monthly basis, the most significant drop since April 2020. In February, it recorded almost the same percentage increase.

Austria is close to Croatia with a production decline in March of 2.7 percent.

The largest increase in industrial production on a monthly basis was recorded in March by Lithuania, at 11.3 percent. This was followed by Estonia, where it rose by 5.1 percent, and Bulgaria and Greece, where it increased by five percent. Eurostat did not have data for Cyprus.

Decline in the Eurozone

On an annual basis, industrial production in the EU increased in March according to seasonally adjusted data by 0.7 percent, following a 2.8 percent increase in February, according to revised Eurostat data.

In the eurozone, production decreased by 0.8 percent in March, following a revised 1.7 percent increase in the previous month, European statisticians calculated.

In both areas, the production of durable consumer goods saw the strongest annual increase, by 6.6 percent. This was followed by the production of non-durable consumer goods, which increased by 4.9 percent in the EU and by 2.8 percent in the eurozone.

In the EU, energy production also rose significantly, by 2.7 percent. In the eurozone, however, the energy sector recorded the largest decline in production, by four percent.

Surge in Lithuania

Among the EU countries, the strongest annual increase in industrial production in March was recorded in Lithuania, at 25.9 percent. This was followed by Bulgaria and Poland with production growth of 19.1 and 17.4 percent, respectively.

In Croatia, industrial production in March fell by 1.9 percent compared to the same month last year. This is its first decline since November 2020. In February, it increased by 4.1 percent.

The largest annual decline in industrial production in March was recorded in Slovakia, at 7.3 percent, according to data from the European statistical office. This was followed by Ireland and Germany with production declines of 5.5 and 4.1 percent, respectively.