Euro Zone industrial output calls for further action from ECB

European Central Bank hawks might have to loosen their stance of not increasing the pace of asset purchase, which shocked the market in December and pushing Euro close to 400 pips higher with hours.

Euro zone, which is home to manufacturing power house Germany, saw its industrial production dip in November by 0.7% from October.  PMI report however suggesting 2015, ended well for Euro Zone. ECB policy has helped Euro area countries to recover from the trough, however current growth not sufficient enough to generate demand driven inflation in Europe. Yearly industrial production, though up by 1.1%, November's dip has been much worse compared to last month's 0.8% growth and -0.3% contraction expected.

Among the Euro area countries, largest monthly drop in production was registered in Portugal (-4.9%), followed by Malta (-3.7%) and Netherlands (-3.1%). Biggest rise was registered in Greece (+3.3%), followed by Estonia and Lithuania (+2.6%).

Energy and capital goods production largely contributed to the drop in November.

Largest annual production rise was in Ireland (+14.2%) and smallest in Netherlands (-8%).

Euro is currently trading at 1.082 against Dollar.