Industrial production (ex-construction) fell a hefty and much sharper than expected 1.2 percent on the month in April. This fully reversed March's unrevised bounce and slashed annual workday adjusted growth from 3.5 percent to 1.9 percent, the worst performance since April last year.
Outside of capital goods, which saw a 0.7 percent monthly gain, weakness was broad-based. Hence, consumer goods were down 1.3 percent and intermediates 1.1 percent while energy slumped some 4.8 percent.
The April data put overall production 0.6 percent below its first quarter average and equalling its lowest level since October 2017. To make matters worse, the May manufacturing PMI (52.7) found both output and new orders growth slowing to their worst rates since October 2016. Accordingly, not only does May look likely to have been another soft month but the near-term outlook also shows no improvement.
Taken together with the monthly falls already reported in both France (0.5 percent) and Germany (1.0 percent), Wednesday's full Eurozone industrial production report will probably at least unwind March's 0.5 percent gain.