BRUSSELS, Dec 13 Reuters Euro zone industrial production declined by more than expected in October, with the sharpest drop for capital goods such as machinery, reinforcing survey indications that the singlecurrency area is in a recession.

The European Union39;s statistics office Eurostat said on Wednesday that industrial production in the 20 countries sharing the euro fell by 0.7 monthonmonth in October for a 6.6 yearonyear drop.

Economists polled by Reuters had expected declines of 0.3 in the month and 4.6 from a year earlier.

The monthonmonth fall was chiefly the result of a 1.4 decline of output of capital goods, as well as 0.6 falls for intermediate and nondurable consumer goods, such as food and clothing.

Production of energy was up 1.1 and of durable consumers goods by 0.2.

Irish industrial output fell by the most, down 7.0, while that of Greece was 6.0 higher than in September.

The euro zone economy contracted by 0.1 in the third quarter and expectations are that it will decline again at the end of 2023, confirming a recession. Surveys of purchasing managers have pointed to declines in business activity in October and November.

Reporting by Philip Blenkinsop

Source Reuters