Eurozone Industrial Production Disappoints Ahead of Tomorrow’s Q2 GDP Numbers from China

Inflation was back in focus on Wednesday, with industrial production figures for the Eurozone also drawing interest.

Spanish Consumer Prices

Spain’s annual rate of inflation held steady at 2.7% in June, which was up from a prelim 2.6%. The harmonized index for consumer prices rose by 2.5%, which was up from a prelim and May 2.4%.

Eurozone Industrial Production

In May, industrial production fell by 1.0%, reversing a 0.6% increase from April. Economists had forecast a 0.2% decline.

According to Eurostat,

• Production of non-durable consumer goods fell by 2.3%, energy by 1.9%, and capital goods by 1.6%.
• While the production of intermediate goods slipped by 0.2%, durable consumer goods production rose by 1.6%.
• Greece (-4.7%) and Ireland (-4.6%) recorded the largest monthly declines in production. By contrast, Lithuania recorded a 7.7% jump in production to lead the way.
• Compared with May 2020, industrial production was up 20.5%. In April, production had been up by 39.4%. Economists had forecast a 22.2% increase.

Market Impact

Ahead of today’s industrial production figures, the EUR had risen to a pre-stat and current day high $1.17995 before falling back.

In response to today’s production figures, the EUR fell to a post-stat low $1.17760 before rising to a post-stat high $1.17964.

At the time of writing, the EUR was up by 0.14% to $1.17927.

Next Up

With no major stats due out of the U.S later today, corporate earnings will be in focus. Tomorrow’s 2^nd quarter GDP numbers from China will be a consideration late in the day, however.