Industrial production remains negative YoY

Industrial Production Posts Another Strong Increase for June, But It Remains Negative YoY

Posted Wednesday, August 12, 2020 by
Skerdian Meta • 1 min read

Industrial production was already quite volatile last year in the Eurozone, as the US-China trade war was keeping the sentiment pretty weak for manufacturing and the industrial production. But, it went through some major declines in May and June, during the lock-downs, like most of the other sectors. In May we saw a strong bounce and today’s report showed yet another decent increase in activity for June, but the year-on-year (YoY) figures still remain quite negative.

Eurozone June Industrial Production Report

  • June industrial production +9.1% vs +10.0% expected
  • May industrial production +12.4%; revised to +12.3%
  • Industrial production WDA YoY -12.3% vs -11.6% expected
  • Prior industrial production WDA YoY -20.9%; revised to -20.4%

Similar to May, the rebound in euro area factory output was less-than-expected but still shows signs of improvement since bottoming out in April. That said, the recovery remains rather tepid with overall conditions still way off relative to that of a year ago.

Nonetheless, this pertains to Q2 data and it is pretty much a quarter that is written off at this point. The data over the next few months will offer a better indication of the recovery process and how sustainable that will be towards the end of the year. Anyway, the Euro has climbed higher after that report, with EUR/USD trading at 1.1770s now.
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