To: Haim R. Branisteanu who wrote (38640 ) 8/13/2008 1:19:33 PM From: elmatador Read Replies (1) | Respond to of 217980 Output in the 15 nations that share the currency was unchanged from the previous month, when it dropped 1.8 percent, the European Union's statistics office in Luxembourg said today. From a year earlier, production fell 0.5 percent, the biggest decline since September 2003. Risk of nosediving Haim. European Industrial Output Stalled in June After Slump in May By Fergal O'Brien Aug. 13 (Bloomberg) -- European industrial production stagnated in June after falling the most in almost 16 years in May as the region's economy capped its worst performance since the launch of the euro in 1999. Output in the 15 nations that share the currency was unchanged from the previous month, when it dropped 1.8 percent, the European Union's statistics office in Luxembourg said today. From a year earlier, production fell 0.5 percent, the biggest decline since September 2003. As manufacturing slumped in the face of the euro's advance against the dollar and record oil prices, the euro-area economy probably contracted in the second quarter for the first time since the single currency was established almost a decade ago, economists estimate. Growth may remain ``particularly weak'' through the current quarter, European Central Bank President Jean-Claude Trichet said last week. ``Most indicators point to a protracted slowdown,'' said Katrin Robeck, an economist at Moody's Economy.com in London. While the recent declines in the euro and oil prices ``will ease some pressure,'' they ``will not stop economic growth from slowing well into 2009.'' The euro, which gained almost 10 percent in the last year versus the dollar, has dropped 6 percent in the past month and traded at $1.4913 today. Oil has fallen 23 percent from a record $147.27 a barrel on July 11; prices are still 58 percent higher than a year ago. Industrial output in June was weaker than the median forecast of 0.1 percent growth from 38 economists surveyed by Bloomberg News. From the year-earlier month, they had expected output to rise 0.2 percent. Euro-Area Economy A separate survey of economists shows they estimate the euro-area economy shrank by 0.2 percent in the three months through June. The statistics office is due to publish that data tomorrow. Output in France, the euro region's second-largest economy, fell 0.4 percent in June from May, while it dropped 2 percent in Spain. Production rose 0.3 percent in Germany, Europe's biggest economy, after a 2 percent drop the previous month. To contact the reporter on this story: Fergal O'Brien in Dublin at fobrien@bloomberg.net.