* Industrial output up 0.7 pct m/m, 6.9 pct y/y
* Figures consistent with slowing growth forecast
* Production boosted by capital goods, Germany figure
By Marcin Grajewski
BRUSSELS, Dec 14 Euro zone industrial production
increased less than expected in October, data showed on Tuesday,
chiming with forecasts of slower growth in the fourth quarter as
the currency area struggles to ward off a debt crisis.
European Union statistics office Eurostat said that
industrial output in the 16 countries using the euro rose 0.7
percent month-on-month for an annual gain of 6.9 percent.
Economists polled by Reuters had expected a monthly rise of
1.3 percent and an annual increase of 7.6 percent.
Eurostat also revised upwards the September figures to -0.7
percent from a previous reading of -0.9, and to 5.4 percent
year-on-year from 5.2 percent.
For full data see:
Industrial production accounts for less than 20 percent of
euro zone gross domestic product, but because of its knock-on
effects on other sectors it is still seen as a good proxy for
estimating gross domestic product growth.
Euro zone growth slowed to 0.4 percent in the July-September
period, quarter-on-quarter, from 1.0 percent in the previous
It is expected to remain subdued as austerity measures
ordered by many governments begin to bite and uncertainty linked
to sovereign debt problems may undermine consumer spending.
Eurostat said industrial production growth was fuelled by a
1.8 percent monthly increase in capital goods, such as
machinery, tools and equipment used to produce other goods,
suggesting corporate investment was on the rise.
But production of durable consumer goods contracted 0.1
percent on the month, pointing to weak private demand that is
key to making euro zone growth self-sustaining.
The data confirmed that euro zone growth is being powered by
Germany, the area's biggest economy, where monthly production
increased by 3.0 percent. Output fell by 0.6 percent in France,
the euro zone's second biggest economy.
Encouragingly, production rose in crisis-hit Greece and
Spain -- by 3.6 percent and 0.1 percent respectively.