Sharp Decline in European Industrial Production at the Start of the Year; Stagnation in Croatia

Industrial production in the eurozone and the EU sharply fell in January, while in Croatia it stabilized, remaining at the level of the end of 2023, according to a report from Eurostat released on Wednesday.

Industrial production in the eurozone and the EU fell in January by 3.2% and 2.1%, respectively, compared to the previous month, as shown by the report from the European statistical office.

In December, it had increased by 1.6% in both areas, according to revised data.

The most significant decline in January in both areas was in the production of capital goods, which fell by 14.5% in the eurozone and by 12.8% in the EU.

The production of durable consumer goods also decreased more significantly in the eurozone, by 1.2%, while it was almost stagnant in the EU.

Conversely, the production of intermediate goods increased the most in both the eurozone and the EU, by 2.6% and 2.9%, respectively.

The energy sector also recorded growth, by 0.5% in the eurozone and by 0.6% in the Union.

Strong Decline in Ireland

Among the countries for which Eurostat had data, industrial production in Ireland fell the most in January on a monthly basis, by 29%. Malta and Estonia followed with significant declines of 9.4% and 6.6%, respectively.

Conversely, production in the Polish industry increased the most, by 13.3% compared to December. Slovenia and Lithuania followed with increases of 10.6% and 7.2%, respectively.

In Croatia, industrial production in January remained at the level of the previous month, when it had decreased by 4.0% according to revised data.

Eurostat did not have data for the Czech Republic and Italy.

Poor Start to the Year

A comparison with the beginning of last year also shows a sharp decline in European industrial production, by 6.7% in the eurozone and by 5.7% in the EU, as calculated by statisticians.

In December, it was almost stagnant in the eurozone, while in the EU it increased by a modest 0.6%, according to revised data.

The most significant decline in both areas at the beginning of the year was in the production of capital goods, which fell by 12.1% in the eurozone and by 10.1% in the EU.

The sector of durable consumer goods also recorded a significant decline, of just over eight percent.

Only the production in the energy sector saw a slight increase, by 0.3% in the eurozone and by 0.6% in the EU compared to January of last year.

Croatia Alongside Portugal

Among the EU countries for which Eurostat had data, Ireland recorded the most significant decline in production on an annual basis, by 34.1%.

With a significant gap, Estonia and Bulgaria followed, where production decreased by 8.6% and 7.6%, respectively, compared to January 2023.

Croatian industry also recorded a decline in production on an annual basis in January, by 1.3%. In December, it had decreased by 1.0%.

Portugal was close to Croatia at the beginning of the year, with a production decline of 1.5%.

Conversely, production in Slovenia increased the most in January, by 12.2%. Greece also recorded double-digit growth, by 10.5%, according to Eurostat data.