Euro-area services production falls 0.3 per cent in June
Services production fell 0.3 per cent month on month in the euro area and 0.2 per cent in the EU in June, although output in both areas remained 1.5 per cent above a year earlier. Growth in information and communication did not offset declines in real estate and professional services. Portugal posted one of the strongest monthly increases at 3.1 per cent.
Economics & Markets··Morning
A monthly fall, an annual increase
Eurostat’s first estimate showed seasonally and calendar-adjusted services production falling 0.3 per cent from May in the euro area and 0.2 per cent in the European Union in June. Both areas had recorded monthly growth of 0.7 per cent in May. Yet June output remained 1.5 per cent above its year-earlier level. Diário de Notícias also reported the 1.5 per cent annual increase and monthly decline. The combination shows that output remained above last summer’s level but did not retain May’s momentum.[1], [2]
Industries moved in different directions
In the euro area, information and communication output rose 0.8 per cent month on month, while transportation and storage and accommodation and food services each gained 0.1 per cent. Real estate fell 1.0 per cent, professional, scientific and technical activities 0.7 per cent, and administrative and support services 0.4 per cent. The distribution shows that the overall 0.3 per cent decline was not a uniform contraction across services. Annually, information and communication grew 5.2 per cent while accommodation and food services shrank 1.4 per cent.[1]
The gap between countries
Among member states, the strongest monthly increase was 7.8 per cent, the second strongest was 3.1 per cent and the third strongest was 2.6 per cent. Diário de Notícias highlighted the second-ranked result. The three largest declines were 3.7 per cent, 2.1 per cent and 1.1 per cent. Rapid growth in some countries alongside a decline for the euro-area aggregate shows that the regional headline does not represent every national experience. The 3.1 per cent rate is the monthly comparison from May to June.[1], [2]
