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Bert Colijn, senior economist at ING, notes that the Eurozone’s monthly industrial production declined by 0.9% in December  as temporary factors and downside risks continue to weigh on industry, making a swift recovery in 1Q unlikely

Key Quotes

“Trade wars, emission standard related production delays, yellow vest movements and slowdowns in emerging markets have all played a part in the weakening of production over recent months, causing two quarters of declining production.”

“While the headline figure was much worse than anticipated, durable goods production increased in December and intermediate goods production was flat after a sharp decline in November.”

“There are also some signs of life for industry. Exports from Germany improved significantly in December and new orders outside of bulk also increased. In France, exports even contributed positively to GDP growth. A delayed recovery from temporary factors is expected in the months ahead, which could result in a modest pick-up in the second quarter.”