Bert Colijn, senior economist at ING, points out that Eurozone’s industrial production declined by -1.7% MoM in November and by -3.3% compared to November last year.
Key Quotes
“Consumption looks to have performed somewhat better, but concerns about a technical recession in Germany and Italy are nonetheless rising.”
“Production declined significantly in France as well, which did not see its economy contract in Q3 but is experiencing negative economic effects from the ‘yellow vest’ protests. In Germany, it is not just the car industry disruption that causes the negative effects. Supply-side constraints and weaker demand have caused a broader decline across the industry. That seems to be exemplary for total Eurozone production.”
“If GDP growth does not improve from last quarter’s 0.2%, it will become difficult for the ECB to maintain its forecast of 1.7% growth for the year.”
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