Azernews.Az

By Bloomberg

Euro-area industrial production barely grew in October, indicating a weak start to the fourth quarter as the European Central Bank considers new ways to revive the economy.

Industrial output in the 18-nation region rose 0.1 percent, less than the 0.2 percent increase forecast by economists in a Bloomberg News survey. The data from Luxembourg-based Eurostat also showed production was up 0.7 percent from a year earlier.

ECB President Mario Draghi has said risks to the economy are on the downside, and today’s data may do little do alleviate concerns about the outlook. A round of long-term loans to banks yesterday came in at the low end of analysts’ estimates, and the ECB will consider a quantitative-easing package at its next meeting in January.

“After the disappointing TLTRO take-up, the only small improvement in industrial activity seems insufficient to deter the ECB from announcing a sovereign bond purchase program in January,” said Peter Vanden Houte, an economist at ING Bank NV in Belgium.

The report tallies with surveys from Markit Economics, which have shown manufacturing weakening through 2014. Markit will publish its factory index for this month, along with its services measure, on Dec. 16.

According to Eurostat, the drop in production in November was led by energy, down 1.9 percent, and capital goods, which fell 0.2 percent. It said output declined in France, Spain and Italy, while it stagnated in Germany, the region’s largest economy.

In a separate report, Eurostat said employment in the euro area rose 0.2 percent in the third quarter after a 0.3 percent increase in the previous three months.