Euro area Industrial production shows strength, still way below normal

Euro area industrial production has beaten estimates for July, growing 0.6% from June, while median expectation was just about 0.2%.

Industrial production probably picked up in July, as concerns over Greece had started subsiding.

Which sectors remain a drag to production?

• Decline was registered in intermediate and non-durable consumer goods, both of which registered drop of -0.6%.

Which sectors grew?

• Energy production rose by most at 3% followed by Capital goods (1.4%) , and durable consumer goods (1.3%).

Where (Country) industrial production grew most?

• Highest annual increase in production was registered in Ireland, which grew by 17.9%, followed by Slovakia (11.9%), Latvia (8.3%) and Malta (7.7%).
• Largest monthly increase in production was registered in Ireland (7.2%), followed by Greece (4.3%) and Latvia (2.8%)

Where (Country) industrial production declined most?

• Highest annual decline in production was registered in Estonia, where it dropped by -5.9%, followed by Netherlands (-4.4%) and Greece (-1.5%), France (-1.4%) and Finland (-1.4%).
• Largest monthly decline in production was registered Denmark (-4.6%), and Malta (-1.8%).

The detailed report is concerning as it keep posing evidence of growth fragmentation across the region and it also reflects continued slowdown in core economies such as Netherlands.

Euro is currently trading at 1.133 against dollar, focus now is on FOMC.