ANKARA
Industrial production in the Euro zone dropped sharper than expected in August due to a slowdown in the output of capital goods, according to figures released from the European Union's statistics authority.
Eurostat said in a report published in its website on Tuesday: "In August 2014 compared with July 2014, seasonally adjusted industrial production fell by 1.8 percent in the euro area."
Economists have estimated a contraction of 0.9 percent in industrial output of Eurozone, significantly less than the official figure of 1.8 percent.
The weaker-than-expected performance of industrial output stemmed from the 4.8 percent drop in output of capital goods, a sign that the investment climate in the Eurozone is still fragile since capital goods comprise machinery, tools, buildings, computers and other kinds of equipment used to produce other goods or services.
Among EU members, the second-largest drop in industrial output was observed in Germany, which declined by 4.3 percent compared to the previous month and 2.8 percent annually, a disheartening figure after a 0.2 percent contraction in Gross Domestic Product in the second quarter.
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