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
1Eurozone employment in industry at 28.5 million persons in Q4 2023
Verified2Eurozone manufacturing employment decreased by 0.2% yoy in 2023
Verified3Hours worked in Eurozone industry down 0.1% qoq Q4 2023
Verified4Unemployment rate in Eurozone manufacturing sector 6.1% in 2023
Directional5Eurozone industrial capacity utilization rate 79.5% in Q4 2023
Single source6December 2023 Eurozone manufacturing PMI employment sub-index 49.2
Verified7Eurozone industry employment index (2015=100) at 97.8 in Q4 2023
Verified8Q3 2023 Eurozone hours worked in industry -0.3% qoq
Verified9Eurozone female employment in manufacturing 22% of total in 2023
Directional10Youth employment (15-24) in Eurozone industry 8.2% in 2023
Single source11Eurozone part-time workers in industry 15.4% in Q4 2023
Verified12Temporary employment in Eurozone manufacturing 12.1% Q4 2023
Verified13Average hours worked per week in Eurozone industry 37.2 in 2023
Verified14Eurozone industrial vacancies rate 2.1% in Q3 2023
Directional15November 2023 Eurozone manufacturing employment PMI 48.9
Single source16Eurozone self-employed in industry 9.5% of total employment 2023
Verified17Q2 2023 Eurozone industry employment stable 0.0% qoq
Verified18Eurozone older workers (55+) in manufacturing 25.3% in 2023
Verified19Labour cost index in Eurozone industry +4.2% yoy Q4 2023
Directional20Eurozone manufacturing absenteeism rate 4.8% in 2023
Single source21January 2024 Eurozone employment PMI forecast 49.5
Verified22Eurozone high-skilled employment in industry 28.7% Q4 2023
Verified23Low-skilled workers in Eurozone manufacturing 35.2% 2023
Verified24Eurozone industry productivity per hour +0.5% yoy 2023
DirectionalEmployment 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
1Eurozone gross fixed capital formation in industry €450 billion in 2023
Verified2Manufacturing investment in Eurozone up 1.2% yoy in 2023
Verified3Eurozone capacity utilization investment-related 80.2% Q4 2023
Verified4ICT investment in Eurozone industry €120 billion annually 2023
Directional5R&D expenditure in Eurozone manufacturing 3.1% of value added 2023
Single source6Eurozone machinery & equipment investment +2.5% in 2023
Verified7Construction investment related to industry -1.8% yoy 2023
Verified8Eurozone green investment in industry €85 billion in 2023
Verified9FDI inflows into Eurozone manufacturing €250 billion 2023
Directional10Eurozone intangible assets investment €70 billion industry 2023
Single source11Q4 2023 Eurozone investment in capital goods +0.9% qoq
Verified12Depreciation rate in Eurozone industry assets 4.2% 2023
Verified13Eurozone venture capital in manufacturing startups €15 billion 2023
Verified14Public investment in Eurozone industry infrastructure €60 billion 2023
Directional15November 2023 Eurozone capex sentiment index 15.2
Single source16Eurozone investment in energy-efficient tech +4.1% yoy 2023
Verified17Q3 2023 gross fixed capital formation industry +0.4% qoq
Verified18Eurozone automotive sector investment €45 billion 2023
Verified19Chemical industry capex €30 billion in Eurozone 2023
Directional20Eurozone investment rate in industry 22.5% of GDP 2023
Single source21Digital transformation investment €50 billion manufacturing 2023
VerifiedInvestment 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
1Eurozone industrial new orders index up 1.2% mom in Dec 2023
Verified2Manufacturing new orders in Eurozone rose 2.1% mom excluding ships/aviation Dec 2023
Verified3Eurozone total new orders increased 1.4% mom in December 2023
Verified4Domestic new orders in Eurozone manufacturing +0.8% mom Dec 2023
Directional5Eurozone export new orders +2.5% mom in Dec 2023
Single source6Q4 2023 Eurozone industrial new orders volume +1.1% qoq
Verified7Eurozone new orders index (2015=100) at 102.7 in Dec 2023
Verified8Manufacturing turnover in Eurozone up 1.3% mom Dec 2023
Verified9Eurozone capital goods new orders +2.8% mom Dec 2023
Directional10Consumer goods new orders in Eurozone -0.2% mom Dec 2023
Single source11Eurozone intermediate goods orders +1.0% mom Dec 2023
Verified12Annual 2023 Eurozone new orders down 2.0% yoy average
Verified13November 2023 Eurozone new orders +0.9% mom revised
Verified14Eurozone manufacturing orders yoy -3.1% Dec 2023 excluding large orders
Directional15October 2023 Eurozone industrial turnover +1.5% mom
Single source16Eurozone foreign orders +3.2% mom in Q4 2023
Verified17September 2023 new orders -0.7% mom Eurozone
Verified18Eurozone machinery new orders index 101.5 Dec 2023
Verified192023 average Eurozone turnover growth -0.5% yoy
Directional20Eurozone chemical industry orders +1.6% mom Dec 2023
Single source21August 2023 Eurozone new orders +1.2% mom
Verified22Eurozone transport equipment orders -1.1% mom Dec 2023
Verified23January 2024 Eurozone orders PMI new orders sub-index 52.1
Verified24Q3 2023 Eurozone new orders +0.6% qoq
Directional25Eurozone food turnover +0.4% mom Dec 2023
Single sourceOrders 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
1Eurozone producer prices index (PPI) for industry +0.3% mom Dec 2023
Verified2Eurozone manufacturing PPI +2.1% yoy December 2023
Verified3Energy prices in Eurozone industry -5.2% yoy Dec 2023
Verified4Eurozone intermediate goods PPI -0.1% mom Dec 2023
Directional5Capital goods producer prices +0.4% mom Eurozone Dec 2023
Single source6Consumer goods PPI stable 0.0% mom Dec 2023 Eurozone
Verified7Eurozone industrial electricity prices €0.18/kWh Q4 2023
Verified8Natural gas industrial prices €35/MWh Dec 2023 Eurozone average
Verified9Unit labour costs in Eurozone industry +3.8% yoy 2023
Directional10Eurozone import prices index -1.2% yoy Dec 2023 industry
Single source11Raw materials PPI Eurozone +0.5% mom Dec 2023
Verified12Eurozone manufacturing output prices +1.9% yoy Q4 2023
Verified13Construction materials prices +2.3% yoy Dec 2023
Verified14Eurozone PPI total industry +1.4% yoy Dec 2023
Directional15November 2023 Eurozone PPI -0.2% mom revised
Single source16Eurozone chemical products PPI +1.1% mom Dec 2023
Verified17Metal prices index Eurozone industry -3.4% yoy 2023
Verified18Eurozone food & beverages PPI +0.7% mom Dec 2023
Verified19Machinery PPI stable +0.1% mom Dec 2023
Directional20Eurozone transport equipment prices +0.6% mom Dec 2023
Single source21Industrial services PPI +1.8% yoy Q4 2023 Eurozone
Verified22Eurozone wage costs per hour in manufacturing €32.5 Q4 2023
Verified23Input costs PMI Eurozone manufacturing 52.3 Jan 2024
Verified24Output price expectations PMI 51.8 Jan 2024
Directional25Eurozone steel prices €650/tonne hot-rolled coil Dec 2023
Single source26Aluminium industrial prices €2,200/tonne LME Dec 2023 Eurozone
VerifiedPrices 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
1In December 2023, Eurozone industrial production index (excluding construction) increased by 0.9% month-on-month, after a revised -0.1% in November 2023
Verified2Eurozone manufacturing production rose 1.0% in December 2023 from November, driven by capital goods output up 1.6%
Verified3In Q4 2023, Eurozone industrial production excluding energy grew by 0.7% quarter-on-quarter
Verified4Eurozone total industrial production stood at 104.2 index points (2015=100) in December 2023
Directional5Manufacturing output in the Eurozone expanded by 1.1% yoy in December 2023
Single source6Eurozone intermediate goods production increased 0.5% mom in December 2023
Verified7In 2023 annual average, Eurozone industrial production was down 0.2% from 2022
Verified8Eurozone consumer goods production rose 1.2% mom in December 2023
Verified9Energy sector production in Eurozone fell 2.1% mom in December 2023
Directional10Eurozone capital goods production surged 1.6% mom in December 2023
Single source11November 2023 Eurozone industrial production excluding construction was -0.1% mom, revised from -0.3%
Verified12Eurozone manufacturing PMI production sub-index reached 51.2 in January 2024
Verified13In October 2023, Eurozone industrial production grew 0.1% mom
Verified14Eurozone non-durable consumer goods output up 0.8% mom in December 2023
Directional15Q3 2023 Eurozone industrial production excluding construction +0.5% qoq
Single source16Eurozone durable consumer goods production +2.3% mom in December 2023
Verified17Annual 2023 Eurozone manufacturing production -1.6% yoy average
Verified18Eurozone electricity production index at 98.5 in December 2023 (2015=100)
Verified19September 2023 Eurozone industrial production -0.6% mom excluding construction
Directional20Eurozone mining and quarrying production +1.4% mom December 2023
Single source21Eurozone industrial production yoy -0.8% in December 2023
Verified22Q2 2023 Eurozone total industrial production +0.4% qoq
Verified23Eurozone chemical industry production index 105.3 in Dec 2023
Verified24August 2023 Eurozone manufacturing output -0.4% mom
Directional25Eurozone food production stable at 0.0% mom December 2023
Single source26January 2024 Eurozone industrial production forecast +0.3% mom
Verified27Eurozone machinery production +0.9% mom Dec 2023
Verified282022 Eurozone industrial production peaked at 107.8 index
Verified29Eurozone transport equipment production -0.5% mom Dec 2023
DirectionalProduction 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