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Euro zone industry output is suppressed by Italy and France
In March, euro zone industrial output headed south for a second month in a row due to the fact that output slumped in Italy and France, although revived in the EU’s number one economy - Germany. That’s what data from the EU’s statistics agency revealed on Tuesday.
According to Eurostat, output in the 19 members of the European Union headed south by about 0.3% on the month, which happens to be in line with market hopes, and also by 0.6% year-on-year.
March’ dive followed a 0.1% tumble of the industrial output in February that Eurostat updated upwards from its previously forecast of a 0.2% dive.
However, the first quarter of 2019 was still positive due to the 2 rally reported in January.
In fact, output was suppressed mostly by a 1.0% tumble in non-durable consumer goods, in particular, toothpaste or food because retail sales came to a halt in the EU in March.
Aside from that, output of durable consumer goods, in particular fridges or cars, tumbled by about 0.7% on the month, indicating managers' hopes for a rebound in sales of more expensive items.
Germany's first positive month in the year didn’t appear to be enough to compensate marked doves of output in Italy and France, the EU’s third and second economies, ending up with an overall negative outcome for the euro zone.
The EU’s number one economy, Germany, reported a 0.4% jump, following two monthly dives in a row.
However, output went down by 1.0% in France as well as by 0.9% in Italy. The dives followed jumps in the two previous months in both EU members.
All attention on the market is on the Brexit process. Fears over the no-deal Brexit pushed the British pound deep down yesterday after UK Prime Minister Boris Johnson claimed he was ready to abandon negotiations.
The market sentiment is mixed, and the US dollar is trading near the lowest levels for over two years. Let’s have a look at the main market movements today.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.