Industrial production drops in Eurozone

Industrial production across the European Union fell 1.1 percent during May compared to a month earlier, according to estimates from the EU statistics agency Eurostat.

Compared with a year earlier, industrial production grew 0.5 percent in the 18 countries of the euro currency bloc -- called the Eurozone -- and 1.1 percent in the 28 members of the EU, the agency said Monday.

Growth in May was fastest in Romania with 2.6 percent and in Lithuania with 1.6 percent, the data revealed. The largest decline was registered in Portugal at -3.6 percent and in Denmark at -2.1 percent.

Monday's data showed that the drop in industrial production in Eurozone in May was mainly due to decreases in the production of intermediate, durable and non-durable consumer goods.

- French industry shrinks

Germany, Europe's largest economy, saw a month-on-month decline of -1.4 percent in May, the agency said. The U.K. industrial sector was down -0.7 percent after a gain of 0.3% in April.

France's industries declined -4.2 percent in May compared to the same month of a year earlier, the data revealed.

The highest increases in yearly industrial production were registered in Romania at 15 percent and in Lithuania at 10.2 percent.

The fastest growing industrial sector is capital goods, with companies investing in new equipment. The energy sector is the only sector that is increasing on monthly basis by 2.2 percent while shrinking on annual basis by 2.9 percent.