Euro-area production slump adds to gloomy economic outlook

FRANKFURT • Industrial output in the euro area last November fell the most in almost three years, raising questions over the economy's ability to regain momentum after a broad-based slowdown.

Production dropped 1.7 per cent in November, more than economists predicted, underlining the impact from a range of temporary and structural factors - from dry weather to softer global demand.

The decline was led by a 2.3 per cent drop in capital goods, though output was weaker across all product groups.

The largest slump in overall production was recorded in Ireland.

The decline was led by a 2.3 per cent drop in capital goods, though output was weaker across all product groups.

The data comes after the European Central Bank stopped adding stimulus for the region's economy after nearly four years of bond buying.

Governing council member Francois Villeroy de Galhau said last week that officials should wait until the spring before taking new policy steps amid economic weakness and a fragile international outlook.

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A version of this article appeared in the print edition of The Straits Times on January 15, 2019, with the headline 'Euro-area production slump adds to gloomy economic outlook'. Print Edition | Subscribe