Industrial production up by 2.1% in Euro Area

Eurostat figures have shown that industrial production in the euro area has risen by 2.1% for January, compared to December last year.

For the whole of the European Union (EU) , growth in the sector was 1.7%.

The data was positive, as in December there were month on month reductions in industrial activity, of  0.5% in the euro area, and by a slightly greater 0.6% in the EU.

Year on year, the industrial sector expanded by 2.8% in the euro area, and by 2.5% across the EU’s 28 member states.

Capital goods rising by 3.9% was the largest contributor to the growth in the euro area, energy and non-durable consumer goods grew by 2.4%, durable consumer goods by 1.3%, and intermediate goods by 0.9%.

In the EU, the increase of 1.7%  was also achieved by capital goods rising, by 3.3%, followed by energy by 2%, nondurable consumer goods by 1.5%, and intermediate goods,  and durable consumer goods both hiked by 1%.

The highest increase in industrial production across the EU, was found in Ireland , which accelerated at 12.7%.

They were followed by Estonia 4.9%, Croatia 3.2%, and Germany 2.9%, in contrast  the largest decreases were in Malta minus 5%, Romania minus 2.3% and Finland minus 2.1%. 

Euro Begins Day Falling Against the Dollar 

The euro is currently buying $1.11, having fallen from the $1.116 at the beginning of the day GMT.

Over the weekend, the euro has experienced a slide in comparison to the greenback, since the rise in the euro following the outcome of the European Central Bank’s (ECB) Governing Council meeting in Frankfurt last week.

Selling pressures increased due to the measures announced, including a hike in the ECB’s quantitative easing programme by EUR 20 billion to EUR 80 billion per month.

LMAX Exchange FX Strategist Joel Kruger believes that the EUR/USD relationship has entered a choppy period, offering no short term directional insight.

A break and close back above 1.1219 will open the door for a retest of the 2016 peak at 1.1377, the forex company said in its daily brief.

The UK pound has started the day steadily against the US dollar, and is currently buying $1.43, where the pound has roughly remained at for the majority of  this morning GMT.

Solid UK trade data, the diminished Brexit risk, and overall improved risk appetite, have all contributed to  this latest recovery in the pound, according to Joel Kruger, FX Strategist at LMAX Exchange.

Any new headlines relating to Brexit risk, and the EU referendum, will also play a part in directing the relationship between sterling and the greenback.

Lloyds Bank PMI Survey Shows Business Output Slowdown 

The latest  Lloyds Bank Regional Purchasing Managers’ Index (PMI), for February,  has revealed that there has been a slowdown in the growth of UK business output.

The index, which measures changes in the combined output of manufacturing and services, scored a total of 52.9, down from the 52.6 that was recorded for January.

This is the lowest total the index has been for 34 months, and well below the average of 56.8 that has been reached since the end part of 2012.

Staff hiring also eased, while average prices charged for goods and services were reported to have risen only marginally.

Although the survey found that UK employment rose during February, spearheaded  by solid job creation in the East of England and London.

However, the pace of hiring eased to the weakest for two-and-a-half years,  and there were falls in employment in Wales and the North East.