The Euro halted its gains against the Pound and US Dollar on Thursday after industrial production data came in well below economist expectations, increasing concerns that the Eurozone’s ‘recovery’ has stalled.
The data released by the Luxembourg based Eurostat showed that industrial output in the Eurozone fell by 1.1% in October, compared with the 0.2% decline recorded in the previous month. Economists had expected output to have risen by 0.3%.
Declines in energy production, electronic good and car manufacturing all led the way and capital goods production also tumbled. The data doesn’t paint a very positive picture for the Eurozone economy. Unemployment remains at record highs, inflation is low and consumer and business confidence is also in the doldrums.
“All in all, today’s industrial production figures clearly highlight the bumpy and fragile nature of the Euro zone’s economic recovery. With Eurozone growth seemingly stuck in low gear dis-inflationary pressures will persist thereby keeping the possibility of further ECB action very much alive” said an economist at ING.
Worryingly for the region is the fact that output in Germany and France, the region’s top two economies both fell with Germany recording its biggest decline in output since July. Elsewhere production is weak in other nations with the Republic of Ireland seeing output plummet by 11.6%, its worst performance since September last year.
Data out of the Netherlands also disappointed as retail sales in the country fell by 1.5% on a yearly basis in October. Economists had been predicting a fall of 0.2%.
Current Euro (EUR) Exchange Rates
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3787
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8406
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5237
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6590
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7252
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1894
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6560
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6025
(Correct as of 12:10 pm GMT)
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