Eurozone: Industrial production bounces back in August - ING

Bert Colijn, Senior Economist at ING, notes that Eurozone’s industrial production increased by 1% MoM after two consecutive declines, thereby keeping industry on track for a small positive contribution to growth in Q3

Key Quotes

“The jump in August does not wipe out concerns about the performance of European industry but does give industrial a fighting chance of achieving growth in the third quarter.”

“Most countries saw production grow in August, although production in Germany stagnated. Italy had experienced a rapid fall in the manufacturing PMI over recent months, sparking concern over a possible industrial recession, but experienced strong growth of 1.7% MoM in August. This provides some relief in nervous times about the Italian budget and state of its economy.”

“The improvement in production in August provides some relief, but does not move the needle on the cruising speed of Eurozone GDP. It seems consistent with a cautious growth path of 0.4% GDP growth for the second half of 2018.”