Next week data in the Eurozone includes Industrial Production and in Germany inflation numbers. Analysts at Danske Bank a decline in April’s industrial production in line with the PMIs.
“We look out for the April industrial production print on Thursday. Since December 2018, industrial production has been on an upward trend. However, this ended in March, when the print came in at -0.5 % y/y. Despite signs of increasing domestic demand, the latest business surveys point to continued headwinds in the manufacturing sector, with risks of these broadening out to other sectors on the back of the still ongoing geopolitical uncertainty. Hence, we estimate a fall in the April print in line with the March print and the manufacturing PMIs.”
“In Germany, we are set to get the final May inflation print on Thursday and with it the underlying components. The headline print took a sizable fall last month, falling from 1.84% y/y in April to 1.64% y/y in May, so we are particularly interested in the drivers of this deterioration. It is likely that service price inflation was a drag due to seasonal effects from the timing of Whitsun but whether core inflation also dragged the print down will be of great interest.”