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Industrial Production Rises, Delivering Market Comfort ahead of Economic Sentiment and GDP Numbers

By:
Bob Mason
Published: Dec 7, 2021, 09:25 UTC

Following disappointing factory orders from Germany on Monday, industrial production figures impressed this morning. Next up, economic sentiment and GDP numbers...

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In this article:

It’s been a busy morning on the economic calendar, with stats from China and Japan in focus in the early hours. Following the RBA monetary policy decision, the German economy was in the spotlight going into the European open.

Industrial Production

In October, industrial production increased by 2.8%, reversing a 0.5% decline from September. Economists had forecast a 0.8% rise.

According to Destatis,

  • Production in industry excluding energy and construction was up by 3.2%.
  • Within industry, the production of capital goods showed an increase of 8.2%.
  • The production of motor vehicles, trailers, and semi-trailers was up by 12.6%.
  • There was a 0.4% decline in the production of intermediate goods and a 0.1% fall in the production of consumer goods, however.
  • Outside of industry, energy production rose 0.9% and production in construction up 1.2%.
  • Compared with October 2020, industrial production was down by 0.6%.

Market Impact

Ahead of today’s stats, the EUR had risen to a pre-stat high $1.12966 before the reversal.

In response to the production figures, the EUR rose to a post-stat and current day high $1.12984 before falling to a post-stat and current day low $1.12535.

At the time of writing, the EUR was down by 0.21% to $1.12626.

071221 EURUSD Hourly Chart

Next Up

ZEW Economic Sentiment figures for Germany and the Eurozone and GDP numbers for the Eurozone.

Later in the day, unit labor costs, nonfarm productivity, and trade data from the U.S will also draw interest.

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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