Eurozone industrial output in big July fall

Economic IndicatorsAssociated Press

Official figures show that industrial production across the 19-country eurozone fell by a hefty 1.1 percent in July, a development that could seriously weigh on the region's third-quarter growth.

The decline reported Wednesday by Eurostat, the EU's statistics agency, more than offset the previous month's 0.8-percent gain. Still the decline was more or less in line with market expectations so the news had little impact in markets.

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Germany, Europe's biggest economy, was the chief reason behind the fall as it recorded a 1.9-percent monthly decline.

Stephen Brown, European economist at Capital Economics, said the figures "clearly don't bode well" for eurozone economic growth in the third-quarter and will further pressure policymakers at the European Central Bank to enact a further stimulus in the months to come.