According to the data provided by Eurostat (European Union's statistics office), the month of March was not so good for the industrial sector in the Eurozone.
Overall, the industrial output fell during March amid a plunge in the production of capital goods. However, the major contributor behind the decreased industrial output was Ireland. For the most part, the results from Ireland are usually volatile and can affect the overall statistics.
As per the official data from Eurostat, industrial production declined by 4.1% on a MoM basis. As for the YoY basis, the decline was 1.4% after accounting for March's reading.
The economists were expecting a decrease of only 2.5% MoM and a YoY gain of 0.9%. But it appears that the actual results were way worse than the economists forecast.
In Ireland, industrial production fell by 26.3% during March. And if we compare the annual results, the actual rate of decline is 26.1%!
One key thing to note here is that the statistics office of Ireland is working toward reviewing its methods of calculating the industrial output.
The capital goods output, which includes building equipment, materials, & services, also decreased by 15.4%. Similarly, the YoY decline in the capital goods output was around 2.1%.
In addition, all the other components which are part of the industrial production are also down. However, durable consumer goods seem to be an outlier which actually increases by 2.8% during the month. But when compared with a year earlier, it is also down by 0.8%.
Overall, the recent data doesn't paint a very good picture of the Eurozone's industrial sector at all. However, there's a chance that seasonal adjustments and changes might have a major role in the recent declines.
Furthermore, the global inflation problem and the recession is also effecting the industrial output of the Eurozone countries. That's why if the readings for the next few months also turn out to be bad, it would spiral into serious trouble for the Eurozone.