German Industry Production Falls

Figures from the German Federal Statistics Office, have revealed that production in industry has been reduced month on month by 1.2% in December last year.

This was a more significant fall compared to the 0.1% decline in industry activity that was recorded in November, in comparison to October.

Intermediate goods was the most successful production category for December, as this increased by 0.8%. While energy production spiralled down by 3%, and construction activity also decreased by 0.2%

Industry costs also slid in December, as the production of capital goods suffered a decrease of 2.6%, and the production of consumer goods also eased by 1.4%.

There was more positive news for Germany’s manufacturing sector, as turnover rose by 1.8% in December, from November figures.

This was contrast to the figures for November, where turnover showed a decrease of 2.1% month on month.

Trade with overseas manufacturing customers increased by 1.8%, and was closely followed by domestic turnover leaping by 1.7%.

Sales to other euro area nations was 0.6% higher, while sales to countries outside of the euro area rose more dramatically by 2.7%.

Year on year, manufacturing turnover surged by 0.3%, domestic sales have improved by 0.1% for December last year, and business from foreign customers also increased by 0.5%.

For the whole of last year, the turnover in manufacturing was 1.5% above the level of the same period in 2014; domestic turnover climbed upwards by 0.3%, and foreign turnover increased 2.6%.

Manufacturing Industry Investment to Increase Says French Survey

Business leaders have said in a survey conducted by the French National Institute of Statistics and Economic Studies, that they forecast investment in their equipment spending will rise by 7%.

An increase of four points to when they were asked the same question in October last year.

There was a noticeably sharp rise in the spending forecast for the electrical, and electronic and machine equipment sector, where a 9% rise in outlay was predicted.

Respondents to the survey were also optimistic transport equipment would also receive a higher level of spending this year, with an expansion of spending by 6%.

Industrial leaders also reported an increase in their investment in the second half of last year in comparison ot the first six months of 2015.

That pattern may continue, as more business leaders reported that for the first six months of this year, they expect investment to increase, as opposed to falling.

The survey results will be welcome, and could be a catalyst for further growth in the French economy.

In the second and third quarter last year, growth reached 0.3% and 0.2% respectively, after there was zero expansion in the first quarter last year.

Euro Continues US Dollar Rise

The euro has rise against the US Dollar this morning GMT, peaking at buying just under $1.124, but has now fallen to buying $1.117.

As stock markets have precipitated, the euro has become a safer bet for investors. The prices of United States crude oil futures also fell to $26.69 a barrel, weighing down the dollar.