Euro area: Industrial production data in focus – RBC CM

According to the analysts at RBC Capital Markets, although the industrial production series is volatile month-to-month, the 0.1% fall in October was softer than might have been expected given the noticeable strengthening of the euro area manufacturing PMI in the same month (manufacturing output accounts for the bulk of the index).

Key Quotes

“That failure of the early quarter harder data to reflect strengthening survey data is one of the primary reasons that we have maintained our Q4 GDP forecast at 0.3% q/q despite PMI data pointing to an outturn closer to 0.5% q/q. Similar to the UK, therefore, we will look to next  release for guidance on whether lifting that forecast is warranted.”