Euro area industrial output likely to have grown in April; French final HICP inflation seen at 0 pct in May

Euro area’s industrial production is expected to have grown in April, based on the national numbers that have been released. According to a Societe Generale report, euro area’s industrial production is likely to have grown 1.1 percent on sequential basis. This might imply a decent start to the second quarter. At the end of the first quarter, the currency bloc’s industrial output had declined. Given that thus year began well, the projection might signify a rise in output by just 0.2 percent q/q in the second quarter of 2016.

Meanwhile, France’s HICP final inflation is likely to have remained unchanged from the flash estimate of zero percent in May. The national CPI measure is also expected to have been remained at -0.1 y/y. Looking at the details, the energy component registered a lesser annual fall, which was due to a pick-up in petroleum prices. Meanwhile, food prices increased 0.9 percent y/y, thanks to a sharp rebound in fresh foodstuffs.

Within core components, services inflation weakened slightly to 0.9 percent y/y, whereas manufacturing products’ prices continued to be at -0.6 percent y/y. French inflation is expected to rebound at a more rapid pace in the second half of 2016 with the help of base effects from energy prices, added Societe Generale.