Seasonally adjusted production in construction increased by 2.4pc in the EU in August 2020 on a monthly basis but decreased by 1.5pc from August 2019, according to European statistical agency Eurostat. Industrial production increased by 1pc in August from July.
Exports from the EU fell by 12.4pc to €1.2tn in January-August 2020 from the same eight-month period in 2019 while imports declined by 13.4pc to €1.1tn during the same period. Trade within the EU region also fell by 11.2pc to €1.8tn in the eight-month period.
The EU’s ratio of government debt to GDP ratio increased by 8.4pc from 79.4pc in Q1 2020 to 87.8pc in Q3 2020. The significant increase is attributed to a decrease in GDP due to economic slowdown from COVID-19 and government debt increasing sharply via financial assistance efforts. The Q1 2020 debt to GDP ratio was close to that in Q2 2019 at 79.7pc.
Business investments in the Euro area decreased to 23.2pc in Q2 2020 as business profit share hit 39.8pc, almost at level pre-COVID-19 lockdowns. The business investment was at 25.8pc in Q2 2019 as the business profit share was 38.1pc. The recovery in business profit share for the quarter was attributed to a sharp decline in compensation for employees.
EU’s annual inflation fell to 0.3pc in September from the previous month on growth in construction and industrial production, according to Eurostat.