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Eurozone Industrial Production data disappoints - ING

FXStreet (Łódź) - Martin van Vliet from ING comments on the Eurozone Industrial Production numbers for August which came in considerably lower than expected.

Key quotes

"Industrial production in the 18-country region dropped by a larger-than-expected 1.8% MoM in August (consensus: -1.6%), more than reversing the revised 0.9% increase seen in July."

"It now seems likely that the industrial sector acted as a drag on Eurozone GDP in the third quarter."

"Admittedly, the weakness in August was amplified by the timing of school holidays in Germany where output plunged by 4.3% MoM, so September will likely see a rebound."

"But even if output were to rise by 1.5% in September, it would still fall by 0.3% QoQ in Q3 as a whole."

"Fortunately, the larger services sector fared better in Q3 and should have contributed positively to GDP growth. So we doubt whether the overall Eurozone economy contracted in the third quarter."

"For the time being, we have pencilled in Eurozone GDP growth of 0.1% QoQ. However, such growth obviously is still alarmingly slow."

"With the Eurozone recovery in flatlining mode, pressure on Eurozone policymakers to deploy further stimulus looks set to continue."

United States Redbook index (MoM) rose from previous -0.3% to 0% in October 10

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