The official statistics revealed today that the industrial production was flat in the month of July, in those 16 countries that use the Euro. But this wasn't the case in the last month. These figures show that the sector's spring recovery has run its course.

The records of July have followed the 0.2% decline in the month of June. The reading has been unchanged, as said by Eurostat, the EU's statistics office, which is a huge increase over the last three months. But the reading is much lower than it had been projected. It had been expected by the consensus forecast in the markets that during this month, the industrial output might rise by 0.2%.

This reading was flat because of the expanding capital goods and the consumer non-durables output has offset a further contraction for consumer durables, and also because of the intermediate goods and energy.

Because of these causes, the annual gain this time has shown the slightest rise since the month of February, and it has slowed down to 7.1%. While on the other hand, the July's output, as compared to the second quarter average was up 0.2%.

"Evidence is mounting that activity peaked in the second quarter and manufacturers will find it increasingly difficult to sustain their impressive first-half performance during the first half of 2010 over the coming months", said Howard Archer, Chief European Economist at IHS Global Insight.