Industrial production in the EU and the euro area slowed down in December 2021, reflecting supply problems also in the energy sector in the conditions of a sudden gas price growth, shows a Eurostat report.

In December 2021, the seasonally adjusted industrial production rose by 0.7% from November, when it grew by 2.6%. In the euro area, it rose by 1.2%, half the rate of November.

The production of capital goods grew the most in both areas, by 1.8% in the EU and by 2.6% in the euro area, much more than in November.

The production of intermediate goods slowed down abruptly, to 0.2% in the EU and 0.5% in the euro area.

Energy production in the EU grew 0.2% from November, when it had increased by 1.1%. In the euro area, energy production dropped by 0.8% following a 1.6% increase in November.

Among member states for which data are available, the largest monthly increases in industrial production were registered in Ireland (+10.3%), Lithuania (+6.2%) and Luxembourg (+5.1%). The highest decreases were observed in Czechia (-2.9%), Austria (-1.1%) and Italy (-1.0%).

In Croatia, industrial production in December grew by 2% from November, when it dropped by 0.5%. The increase in industrial production at the end of last year was the strongest since March.

Growth better than in 2020

Year on year, industrial production in the EU grew in December by 2.5%, after nearly stagnating in November.

In the euro area it grew by 1.6% after a 1.4% drop in November.

The production of non-durable consumer goods grew the most in both areas, by 8% in the EU and by 7.7% in the euro area.

Energy production in the EU grew strongly as well, by 6.1%, while in the euro area it grew at a much lower rate, of just 1.8%.

The production of capital goods dropped in both areas, by 0.8% in the EU and by 1% in the euro area.

Recovery in Lithuania

Among member states for which data are available, the largest annual increases were registered in Lithuania (+33.3%), Bulgaria (+14.3%) and Poland (+14.1%). The highest decreases were observed in Malta (-7.1%), Ireland (-2.9%) and Czechia (-2.1%).

In Croatia, industrial production in December grew by 6% from December 2020, the most since June. In November it rose by 3.6%.