Euro area industrial production growth likely slowed in Q2

Industrial production growth in the euro area is likely to have slowed in the second quarter. According to a Societe Generale research report, industrial output is expected to have dropped 0.3 percent on sequential basis in the second quarter, following a solid start to 2016.

Germany’s industrial production for the month of June grew 0.8 percent, whereas French industrial output declined in the month. Assuming that Italian and Spanish industrial output rose 0.5 percent each month-on-month in June, and assuming that the other nations’ industrial output rose at the same rate as the average of the past twelve months, euro area’s industrial production is expected to have risen  0.4 percent month-on-month in June. On a year-on-year basis, it is expected to have grown 0.7 percent, added Societe Generale.