Industrial output in the 17 countries that make up the euro zone fell 0.7% from May, the sharpest drop since December; it was 2.9% stronger than in June last year, which is the weakest annual rise since January last year, the European Union's Eurostat agency said. The estimate for output growth in May was increased slightly to 0.2% on a monthly basis and 4.4% on an annual basis.

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Official data released by France's Insee agency Friday showed the euro zone's second largest economy stalled in the second quarter after growing 0.9% in the first. The figures are a fresh blow to France after markets plunged earlier in the week on concerns about the country's triple-A credit rating following the U.S. downgrade last week.

A survey of manufacturers across the euro zone released last week by Markit had already shown the sector slowed to a near standstill in June with activity growth at its weakest level for almost two years. Within the euro zone, industrial production fell 0.8% in Germany in June, 1.7% in France, 0.6% in Italy and 0.8% in Spain, Eurostat said.