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Eurozone industrial production: 6.6% YoY. An unmitigated disaster

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The EU, and especially the Eurozone, are succeeding in achieving their decarbonization goals simply by closing companies and reducing industrial production.

Industrial production in the Eurozone declined 0.7 percent month-on-month in October 2023, reaching its lowest level since 2020 after a revised 1.0 percent decline in the previous period and exceeding the expected 0.3 percent decline.

Capital goods production fell 1.4 percent, followed by 0.6 percent declines in the production of intermediate and nondurable consumer goods, showing, as if any were needed, that there is a consumption and income problem. In contrast, energy production increased by 1.1 percent after two periods of contraction, while the production of consumer durables increased by 0.2 percent.

On a year-on-year basis, industrial activity shrank 6.6 percent in October, exceeding the expected decline of 4.6 percent and extending the current sequence of contraction to the eighth consecutive month. A colossal disaster, needless to hide it. Here is the related graph:

Here instead is industrial production in the euro area year-on-year

Things are slightly better if we switch to considering not the Euro Area but the EU as a whole. The decrease is less hard:

For goodness sake, a graph with perspective from 2015 shows us how industrial production in the Euro Area and the EU is increasingly following different paths, with the Euro being a factor that evidently favors deindustrialization.

If we then evaluate the data country by country, we have countries such as Ireland, the Netherlands, and Estonia where the fall has been more noticeable. However, few European economic realities are saved from this disaster, and none of large size.

In democratic states, this situation would lead to great concern about the future: how long can an economic reality leave manufacturing without becoming impoverished? The problem is that the EU is no longer composed of democratic states but of a kind of bureaucratic directorate that, by dint of abstruse goals and constraints on the economy, governs in a nascent and subtle way but is aimed at the progressive impoverishment of its citizens. Many of them, as if hypnotized, do not understand the consequences of what is happening.

 

 

 

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