Industrial Production Posts Another Big Decline in Europe for December

Industrial production declined by 2.1% in the Eurozone in December, showing that this sector is in deep trouble still

Industrial production falls deeper in contraction

The economy of the Eurozone weakened considerably during last year, with manufacturing and industrial production falling in deep recession. The European Central Bank turned pretty dovish, cutting deposit rates to -0.50% and adding another QE programme.

In the last few months of 2019 we have seen some signs of stabilization, with inflation stabilizing around 1.3%, from 0.7% previously, and manufacturing improving slightly. But, the weakness might resume again, after we saw CPI inflation cool off once more last month, while today we see that industrial production has posted another big decline for December. Below is the report:

  • Eurozone December industrial production -2.1% vs -2.0% m/m expected
  • Prior +0.2%; revised to 0.0%
  • Industrial production WDA -4.1% vs -2.5% y/y expected
  • Prior -1.5%; revised to -1.7%

Industrial output tumbled in the month of December, but that is to be expected after we saw the dreadful German reading last week here. In any case, this just reaffirms the sluggish factory activity in the region towards the end of last year. So, no rest for the wicked, right? Add coronavirus to the equation and I assume the global and the Eurozone economy will resume the slowdown again in the coming months.

ABOUT THE AUTHOR See More
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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