Emerging from a challenging year, the Eurozone's industrial engine flashed signs of renewed momentum in December 2023, with production climbing 0.9% month-on-month as a surge in capital goods output drove a welcome year-end rebound.
Key Takeaways
- In December 2023, Eurozone industrial production index (excluding construction) increased by 0.9% month-on-month, after a revised -0.1% in November 2023
- Eurozone manufacturing production rose 1.0% in December 2023 from November, driven by capital goods output up 1.6%
- In Q4 2023, Eurozone industrial production excluding energy grew by 0.7% quarter-on-quarter
- Eurozone industrial new orders index up 1.2% mom in Dec 2023
- Manufacturing new orders in Eurozone rose 2.1% mom excluding ships/aviation Dec 2023
- Eurozone total new orders increased 1.4% mom in December 2023
- Eurozone employment in industry at 28.5 million persons in Q4 2023
- Eurozone manufacturing employment decreased by 0.2% yoy in 2023
- Hours worked in Eurozone industry down 0.1% qoq Q4 2023
- Eurozone gross fixed capital formation in industry €450 billion in 2023
- Manufacturing investment in Eurozone up 1.2% yoy in 2023
- Eurozone capacity utilization investment-related 80.2% Q4 2023
- Eurozone producer prices index (PPI) for industry +0.3% mom Dec 2023
- Eurozone manufacturing PPI +2.1% yoy December 2023
- Energy prices in Eurozone industry -5.2% yoy Dec 2023
Eurozone industrial production rebounded strongly in December, driven by capital goods.
Employment
- Eurozone employment in industry at 28.5 million persons in Q4 2023
- Eurozone manufacturing employment decreased by 0.2% yoy in 2023
- Hours worked in Eurozone industry down 0.1% qoq Q4 2023
- Unemployment rate in Eurozone manufacturing sector 6.1% in 2023
- Eurozone industrial capacity utilization rate 79.5% in Q4 2023
- December 2023 Eurozone manufacturing PMI employment sub-index 49.2
- Eurozone industry employment index (2015=100) at 97.8 in Q4 2023
- Q3 2023 Eurozone hours worked in industry -0.3% qoq
- Eurozone female employment in manufacturing 22% of total in 2023
- Youth employment (15-24) in Eurozone industry 8.2% in 2023
- Eurozone part-time workers in industry 15.4% in Q4 2023
- Temporary employment in Eurozone manufacturing 12.1% Q4 2023
- Average hours worked per week in Eurozone industry 37.2 in 2023
- Eurozone industrial vacancies rate 2.1% in Q3 2023
- November 2023 Eurozone manufacturing employment PMI 48.9
- Eurozone self-employed in industry 9.5% of total employment 2023
- Q2 2023 Eurozone industry employment stable 0.0% qoq
- Eurozone older workers (55+) in manufacturing 25.3% in 2023
- Labour cost index in Eurozone industry +4.2% yoy Q4 2023
- Eurozone manufacturing absenteeism rate 4.8% in 2023
- January 2024 Eurozone employment PMI forecast 49.5
- Eurozone high-skilled employment in industry 28.7% Q4 2023
- Low-skilled workers in Eurozone manufacturing 35.2% 2023
- Eurozone industry productivity per hour +0.5% yoy 2023
Employment Interpretation
Despite a small decline in jobs and hours worked, the Eurozone’s industrial sector appears to be running on a more expensive, underutilized engine, with productivity barely chugging along at half a percent while labor costs sprint ahead at over four.
Investment
- Eurozone gross fixed capital formation in industry €450 billion in 2023
- Manufacturing investment in Eurozone up 1.2% yoy in 2023
- Eurozone capacity utilization investment-related 80.2% Q4 2023
- ICT investment in Eurozone industry €120 billion annually 2023
- R&D expenditure in Eurozone manufacturing 3.1% of value added 2023
- Eurozone machinery & equipment investment +2.5% in 2023
- Construction investment related to industry -1.8% yoy 2023
- Eurozone green investment in industry €85 billion in 2023
- FDI inflows into Eurozone manufacturing €250 billion 2023
- Eurozone intangible assets investment €70 billion industry 2023
- Q4 2023 Eurozone investment in capital goods +0.9% qoq
- Depreciation rate in Eurozone industry assets 4.2% 2023
- Eurozone venture capital in manufacturing startups €15 billion 2023
- Public investment in Eurozone industry infrastructure €60 billion 2023
- November 2023 Eurozone capex sentiment index 15.2
- Eurozone investment in energy-efficient tech +4.1% yoy 2023
- Q3 2023 gross fixed capital formation industry +0.4% qoq
- Eurozone automotive sector investment €45 billion 2023
- Chemical industry capex €30 billion in Eurozone 2023
- Eurozone investment rate in industry 22.5% of GDP 2023
- Digital transformation investment €50 billion manufacturing 2023
Investment Interpretation
While the Eurozone's industrial heart is still beating, evidenced by a €450 billion investment in fixed capital and promising upticks in high-tech and green sectors, its pulse is frustratingly faint—with sluggish overall growth, a concerning decline in construction, and a capacity utilization rate suggesting it's barely off the couch.
Orders
- Eurozone industrial new orders index up 1.2% mom in Dec 2023
- Manufacturing new orders in Eurozone rose 2.1% mom excluding ships/aviation Dec 2023
- Eurozone total new orders increased 1.4% mom in December 2023
- Domestic new orders in Eurozone manufacturing +0.8% mom Dec 2023
- Eurozone export new orders +2.5% mom in Dec 2023
- Q4 2023 Eurozone industrial new orders volume +1.1% qoq
- Eurozone new orders index (2015=100) at 102.7 in Dec 2023
- Manufacturing turnover in Eurozone up 1.3% mom Dec 2023
- Eurozone capital goods new orders +2.8% mom Dec 2023
- Consumer goods new orders in Eurozone -0.2% mom Dec 2023
- Eurozone intermediate goods orders +1.0% mom Dec 2023
- Annual 2023 Eurozone new orders down 2.0% yoy average
- November 2023 Eurozone new orders +0.9% mom revised
- Eurozone manufacturing orders yoy -3.1% Dec 2023 excluding large orders
- October 2023 Eurozone industrial turnover +1.5% mom
- Eurozone foreign orders +3.2% mom in Q4 2023
- September 2023 new orders -0.7% mom Eurozone
- Eurozone machinery new orders index 101.5 Dec 2023
- 2023 average Eurozone turnover growth -0.5% yoy
- Eurozone chemical industry orders +1.6% mom Dec 2023
- August 2023 Eurozone new orders +1.2% mom
- Eurozone transport equipment orders -1.1% mom Dec 2023
- January 2024 Eurozone orders PMI new orders sub-index 52.1
- Q3 2023 Eurozone new orders +0.6% qoq
- Eurozone food turnover +0.4% mom Dec 2023
Orders Interpretation
Eurozone factories, while nursing a slightly bruised year-end hangover from 2023's overall dip, saw a welcome December espresso shot of orders, led by a strong jolt of export and capital goods demand, suggesting the industrial patient might just be stirring back to life.
Prices
- Eurozone producer prices index (PPI) for industry +0.3% mom Dec 2023
- Eurozone manufacturing PPI +2.1% yoy December 2023
- Energy prices in Eurozone industry -5.2% yoy Dec 2023
- Eurozone intermediate goods PPI -0.1% mom Dec 2023
- Capital goods producer prices +0.4% mom Eurozone Dec 2023
- Consumer goods PPI stable 0.0% mom Dec 2023 Eurozone
- Eurozone industrial electricity prices €0.18/kWh Q4 2023
- Natural gas industrial prices €35/MWh Dec 2023 Eurozone average
- Unit labour costs in Eurozone industry +3.8% yoy 2023
- Eurozone import prices index -1.2% yoy Dec 2023 industry
- Raw materials PPI Eurozone +0.5% mom Dec 2023
- Eurozone manufacturing output prices +1.9% yoy Q4 2023
- Construction materials prices +2.3% yoy Dec 2023
- Eurozone PPI total industry +1.4% yoy Dec 2023
- November 2023 Eurozone PPI -0.2% mom revised
- Eurozone chemical products PPI +1.1% mom Dec 2023
- Metal prices index Eurozone industry -3.4% yoy 2023
- Eurozone food & beverages PPI +0.7% mom Dec 2023
- Machinery PPI stable +0.1% mom Dec 2023
- Eurozone transport equipment prices +0.6% mom Dec 2023
- Industrial services PPI +1.8% yoy Q4 2023 Eurozone
- Eurozone wage costs per hour in manufacturing €32.5 Q4 2023
- Input costs PMI Eurozone manufacturing 52.3 Jan 2024
- Output price expectations PMI 51.8 Jan 2024
- Eurozone steel prices €650/tonne hot-rolled coil Dec 2023
- Aluminium industrial prices €2,200/tonne LME Dec 2023 Eurozone
Prices Interpretation
While core industry producer prices are tentatively stabilizing thanks to falling energy costs, lurking pressures from rising wages and creeping input costs suggest the Eurozone's price reprieve is more of a nervous truce than a decisive victory.
Production
- In December 2023, Eurozone industrial production index (excluding construction) increased by 0.9% month-on-month, after a revised -0.1% in November 2023
- Eurozone manufacturing production rose 1.0% in December 2023 from November, driven by capital goods output up 1.6%
- In Q4 2023, Eurozone industrial production excluding energy grew by 0.7% quarter-on-quarter
- Eurozone total industrial production stood at 104.2 index points (2015=100) in December 2023
- Manufacturing output in the Eurozone expanded by 1.1% yoy in December 2023
- Eurozone intermediate goods production increased 0.5% mom in December 2023
- In 2023 annual average, Eurozone industrial production was down 0.2% from 2022
- Eurozone consumer goods production rose 1.2% mom in December 2023
- Energy sector production in Eurozone fell 2.1% mom in December 2023
- Eurozone capital goods production surged 1.6% mom in December 2023
- November 2023 Eurozone industrial production excluding construction was -0.1% mom, revised from -0.3%
- Eurozone manufacturing PMI production sub-index reached 51.2 in January 2024
- In October 2023, Eurozone industrial production grew 0.1% mom
- Eurozone non-durable consumer goods output up 0.8% mom in December 2023
- Q3 2023 Eurozone industrial production excluding construction +0.5% qoq
- Eurozone durable consumer goods production +2.3% mom in December 2023
- Annual 2023 Eurozone manufacturing production -1.6% yoy average
- Eurozone electricity production index at 98.5 in December 2023 (2015=100)
- September 2023 Eurozone industrial production -0.6% mom excluding construction
- Eurozone mining and quarrying production +1.4% mom December 2023
- Eurozone industrial production yoy -0.8% in December 2023
- Q2 2023 Eurozone total industrial production +0.4% qoq
- Eurozone chemical industry production index 105.3 in Dec 2023
- August 2023 Eurozone manufacturing output -0.4% mom
- Eurozone food production stable at 0.0% mom December 2023
- January 2024 Eurozone industrial production forecast +0.3% mom
- Eurozone machinery production +0.9% mom Dec 2023
- 2022 Eurozone industrial production peaked at 107.8 index
- Eurozone transport equipment production -0.5% mom Dec 2023
Production Interpretation
In a late-arriving holiday gift to the economy, December’s Eurozone factories finally shook off their year-long slumber, with a broad-based production surge—led by a 1.6% jump in capital goods—offering a tantalizing, if fragile, hint of an industrial rebound just as the 2023 annual figures confirmed it was, regrettably, another year of overall decline.
Sources & References
- Reference 1ECec.europa.euVisit source
- Reference 2TRADINGECONOMICStradingeconomics.comVisit source
- Reference 3ECBecb.europa.euVisit source
- Reference 4DESTATISdestatis.deVisit source
- Reference 5INSEEinsee.frVisit source
- Reference 6ISTATistat.itVisit source
- Reference 7PMIpmi.spglobal.comVisit source
- Reference 8OECDoecd.orgVisit source
- Reference 9BDEbde.esVisit source
- Reference 10FOCUS-ECONOMICSfocus-economics.comVisit source
- Reference 11SNBsnb.chVisit source