Industrial production down by 0.7% in Euro Area

Industrial activity in the euro area has fallen by a month on month 0.7%, comparing November to October last year.

Across the European Union (EU), productivity was reduced by a slightly less 0.6% for the same period of time.

These were poor results for the euro area, as in October in 2014, the industrial sector rose by 0.8% for the euro area, and by 0.6% for the EU.

The year on year comparison between November last year and in 2014 revealed better results, as industrial output grew by 1.4% in the euro area, and by a slightly reduced 1.1% in the EU.

The main driver of the negative results is the falling of energy prices by 4.3%, followed by a decline in capital good of 1.9%.

Durable consumer goods also decreased by 1%, although the production of intermediate goods rose by 0.7%, and non durable consumer goods by 0.1%.

Falling energy prices were also the main factor of why the industrial sector contracted, as they dropped by 3.5%.

Capital goods also fell by 1.3%, durable consumer goods and non-durable consumer goods tumbled by 0.3% and 0.1% respectively. The production of intermediate goods climbed up by 0.5%.

The largest decreases in industrial production were registered in Portugal -4.9%, Malta -3.7%, the Netherlands, -3.1%, and Estonia and Lithuania both suffered a fall of -2.6%.

The highest increases, perhaps surprisingly, was found in Greece +3.3%, with Slovakia following with a  rise of  +1.9%.

European Industrial Sector Climbs Upwards

Since the end of 2012, industrial production has risen at a steady pace in the euro area, and in the EU.

Despite the latest month on month reduction in production, currently industrial activity has now reached the same levels as the beginning of 2011, the highest level since the hyperbole of the aftermath of the 2008 financial crash.

German economy continues to grow in 2015

Germany achieved a solid GDP growth of 1.7% throughout 2015, in comparison with 2014, according to official figures.

In 2014 there was a similar growth rate of 1.6%, the last two years have been a significant improvement on the 0.3% increase in 2013.

The figures for last year was above the GDP growth average for the past ten years of 1.3%.

Consumption expenditure was the main driving force behind the GDP increase, as household expenditure rose by 1.9%, government expenditure also rose by 2.8%.

Foreign trade was also more dynamic for last year, as Germany’s export market expanded by 5.4% from the previous year.

Similar growth was also recorded for imports, which grew by 5.7%, in total the balance of trade contributed only a relatively small 0.2% to the GDP total.

The industry and service sectors were significant performers on the production side, as industry excluding construction rose by 2.2%.

There was only a reduction in trade in the services sector for finance and insurance activities, which were reduced by 0.1%.

Euro Improves Against the US Dollar

The euro has made significant gains on the US dollar in the past 24 hours, rising from buying at just above $1.82 after noon GMT yesterday, to over $1.92 this morning.

It is though that two major factors contributed to the dollar’s fall, a reduction in the United States’ stock market value, and the further decline in oil prices.

As the price of a barrel of  Brent Crude oil trickled below $30, for the first time in over ten years.