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Euro zone industry figures signal slowdown

Industrial production - Euro zone figures weaker than expected
Industrial production - Euro zone figures weaker than expected

Industrial production across the euro zone fell 0.7% in June compared with May, prompting analysts to warn of a sharp deceleration ahead of eagerly-awaited growth figures due next week.

The seasonally adjusted measurement of output was still up 2.9% compared to a year ago, the European Union data agency said. However analysts said that the monthly change was weaker than expected.

They noted that output contracted among the largest economies of the area, with France and Germany recording significant falls over the month.

The EU will release its flash estimate for economic growth between April and June on Tuesday.

The figures showed that for the full, 27-state EU, which also includes non-euro Britain and eastern industrial powerhouse Poland, there was an even bigger monthly drop of 1.2% and a much lower annual improvement of 1.7%.