News: EUR 2022-11-14 14:47

Eurozone industry experienced dead cat bounce in third quarter

The third quarter saw remarkably strong production as easing supply problems helped production growth. Don’t expect this to continue much from here on as new orders, production expectations and increasing inventories point to weakening production ahead
Industrial production increased by 0.9% in September and that resulted in a total quarterly increase of 0.5% for 3Q. This was a surprise that added to the positive GDP figure for the quarter. It is most likely caused by fading supply side problems which industry has battled since mid-2020. This is helping backlogs of work to be dealt with, which is boosting production, despite survey data having disappointed consistently over recent months.

In September, production categories were a mixed bag, so there was no broad-based improvement in production. Capital goods and non-durable consumer goods production saw strong growth – just like last month – while intermediate, durable consumer goods, and energy production all declined. Germany was the only large country that recorded growth, while France, Spain and Italy all saw production contract.

While August and September both saw surprisingly strong production, there is little hope for this to be the start of a strong recovery. Businesses continue to report falling new orders as demand is fading and inventories have increased. For the winter months we, therefore, continue to expect weaker production as the catch-up effect for production is unlikely to last much longer.


#EURO #EUR #industry #GDP

Recent events
2023-02-02 17:53
News 593
ECB hikes rates by 50bp

The European Central Bank has hiked interest rates by 50bp and made a quasi-announcement of a further 50bp hike in March...

2023-02-01 19:52
News 44636
German labour market starts the year off strongly

Only a small increase in unemployment in January shows that the labour market remains an important source of resilience ...

2023-01-31 16:36
News 540
Eurozone avoids contraction but domestic demand falters

A resilient eurozone economy managed to grow by 0.1% in the fourth quarter, but this likely masks a contraction in house...

2023-01-31 12:58
News 258
China: PMI positively surprises the market

USDCNY fell to around 6.75 after the PMI data release came in better than expected
Surprise from the non-manufact...

2023-01-30 17:58
News 572
German economy falls into winter recession

So much for reliable statistics! The German economy contracted in the fourth quarter of 2022 after the first tentative s...

2023-01-28 17:21
News 885
Pressure on BOJ Grows

Market movers today
In the US, household spending probably declined in December, with high-frequency indicators s...

2023-01-28 17:19
News 389
Australian dollar shrugs as PPI falls

The Australian dollar is almost unchanged on Friday, trading at 0.7112.

Australia’s PPI slips

2023-01-28 17:13
News 21611
Exclusive: Top U.S. Treasury official to warn UAE, Turkey over sanctions evasion

The U.S. Treasury Department's top sanctions official on a trip to Turkey and the Middle East next week will warn countr...

2023-01-28 17:07
News 909
Dollar clings to gains after U.S. data; traders eye Fed next week

The dollar clung to modest gains against the euro on Friday after data showed falling U.S. consumer spending and cooling...

2023-01-28 17:01
News 661
Gold en route to sixth weekly gain; focus shifts to Fed

Gold steadied on Friday with gains capped by a stronger dollar, but the metal was still set for a sixth straight weekly ...

2023-01-28 16:50
News 22231
Oil prices settle lower on stronger supply outlook

Oil prices settled lower on Friday, making their weekly finish flat to lower, as indications of strong Russian oil suppl...

2023-01-28 16:46
News 546
Chinese PMIs And Potential Commodity Currency Recovery

With lingering questions on how much of an impact China’s reopening will have on the global economy, there’s likely ...

2023-01-28 16:32
News 690
Will the Fed add a hawkish flavor to a smaller hike?

With some Fed officials corroborating investors’ view of a quarter point increase, Wednesday’s FOMC gathering will l...