Advertisement
Advertisement

Eurozone Industrial Production Wanes in April to Test EUR Support

By:
Bob Mason
Published: May 13, 2022, 09:36 GMT+00:00

Economic data from the Eurozone disappointed today, raising more questions over the economic outlook. The EUR fell back to sub-$1.04 levels in response.

Eurozone Industrial Production Wanes in April to Test EUR Support

It was a relatively busy Eurozone economic calendar, with finalized member state inflation and Eurozone industrial production in focus.

The inflation figures had a muted impact on the EUR, placing a greater emphasis on today’s production numbers.

Eurozone Industrial Production Disappoints

In April, industrial production fell by 1.8% month-on-month versus a forecasted 2.0% slide. Production rose by a modest 0.5% in March.

According to Eurostat,

  • Compared with February 2022, the production of capital goods fell by 2.7% and non-durable consumer goods by 2.3%.
  • There were also declines in the production of intermediate goods (-2.0%) and energy (-1.7%).
  • Durable consumer goods production bucked the trend, however, rising by 0.8%.
  • By member state, Slovakia (-5.3%) and Germany (-5.0%) had the largest monthly declines in production.

Compared with March 2021,

  • Industrial production across the Eurozone declined by 0.8% year-on-year.
  • The production of energy slid by 4.0%, with capital goods and intermediate goods production down 2.7% and 0.1%, respectively.
  • There were increases in the production of non-durable consumer goods (+2.8%) and durable consumer goods (+6.6%).
  • By member state, Slovakia (-7.3%), Ireland (-5.5%), and Germany (-4.1%) had the largest decreases in production.

Market Impact

Ahead of today’s numbers, the EUR fell to a current-day low of $1.03733 before rising to a current-day high of $1.04196.

In response to today’s stats, the EUR rose to a post stat high of $1.04089 before falling to a post stat low of $1.03865.

At the time of writing, the EUR was up by 0.09% to $1.03892.

EUR falls back on weak data.
130522 EURUSD Hourly Chart

Next Up

US consumer sentiment figures will be in focus later today along with FOMC member chatter. FOMC member Kashkari is due to speak ahead of the European close.

About the Author

Bob Masonauthor

With over 28 years of experience in the financial industry, Bob has worked with various global rating agencies and multinational banks. Currently he is covering currencies, commodities, alternative asset classes and global equities, focusing mostly on European and Asian markets.

Advertisement