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Eurozone's industrial production continued to decline in July, albeit at a slower pace compared to the previous month, preliminary figures from Eurostat showed on Thursday.

Industrial production dropped 2 percent year-on-year following a 2.4 percent slump in June, which was revised from 2.6 percent. Economists had forecast a 1.3 percent decrease.

The latest fall was led mainly by the declines in the production of intermediate goods and capital goods.

Intermediate goods output fell 3 percent year-on-year after a 3.5 percent drop in June. Capital goods production shrank 3.4 percent following a 4 percent decline in the previous month.

Energy output decreased 1.4 percent after a 0.6 percent decline.

Meanwhile, production of durable consumer goods rebounded with 1.8 percent growth following a 1.2 percent decline. Non-durable goods output grew 1.5 percent after a 1.7 percent growth.

Month-on-month, industrial production decreased 0.4 percent in July after a 1.4 percent decrease in June, which was revised from 1.6 percent. Output fell for a second straight month. Economists had forecast a modest drop of 0.1 percent.