Euro zone industrial production much weaker than expected in July

BRUSSELS (Reuters) – Euro zone industrial production was much weaker than expected in July, data showed on Wednesday, mainly because of a sharp drop in the output of capital goods that are used for to make finished products and reflect business investment.

The European Union’s statistics office Eurostat said industrial production in the 19 countries sharing the euro fell 2.3% month-on-month in July for a 2.4% year-on-year decline.

Economists polled by Reuters had expected a 1.0% monthly fall and a 0.4% year-on-year increase.

Eurostat data showed the output of capital goods, which typically include buildings, machinery, equipment and tools and are used to make final products, fell 4.2% month-on-month in July for a 5.4% year-on-year drop.

(Reporting by Jan Strupczewski; editing by Philip Blenkinsop)