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Eurozone Industrial Production Falls Again

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Eurozone Industrial Production Falls Again

Industrial Production in the Eurozone has fallen again in the month of March according to the Eurostat. Year on year the figure has experienced a measurable fall off from 1.7% the previous month to today’s disappointing -0.1%. A drop to just 1.0% had been anticipated by the markets. Month on month the number retracted from 0.2% growth to a contraction of -0.3%, this fall had been anticipated and as such caused no surprises in the markets.

Earlier in the day there was a further update in the critical inflation figures from various member states within the Eurozone. France registered a slight increase in it’s EU Norm Consumer Price Index (CPI), year on year for the month of April this came in at 0.8%, ten basis points ahead of the 0.7% reading in March but missing the market anticipated figure for a 0.9% increase.

Spain provided a more complete picture of it’s price growth situation. Year on year the CPI registered a measurable gain for the month of April, this met expectations by coming in at 0.4% compared to the March reading of -0.1%. Month on month the gain was more significant, a 0.9% increase was registered compared to a 0.2% rise the prior month, this large increase was exactly as anticipated by the markets.

More relevant to the European inflation numbers was Spain’s Harmonized Index of Consumer Prices (HICP). This measure suffered a month on month fall in April to 0.6% from the previous months 1.6% reading, this fall however was fully anticipated. The year on year reading told a better story, this key measure rose to 0.3% as recorded for April, not only increasing but also reversing the deflationary trend, March’s figure represented a fall in price growth of -0.2%.

Today’s mixed figures present a problem for the European Central Bank, a significant and rapid improvement in the inflation situation is now required, slight pick ups as seen today are unlikely to be sufficient enough to pull the zone out it’s low inflation rut.

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