Euro area industrial production likely dropped in July

Euro area’s industrial production growth is expected to have declined in July. According to a Societe Generale research note, the national figures released, which account for more than 75 percent of euro area output, indicate towards a drop of 1.2 percent in sequential terms. France’s industrial output growth dropped 06 percent month-on-month in July following a 0.7 percent sequential decline in June. This left the annual growth pace in negative territory.

Also, Germany’s industrial production saw a huge decline in July, falling 1.5 percent in sequential terms as compared with the 0.1 percent projected. However, June’s data was revised upwardly to 1.1 percent from 0.8 percent earlier.

“Our forecast, with a constant profile, would lead to a 1.0 percent qoq decrease in 3Q”, added Societe Generale.

However, monthly output figures are volatile in the summer holiday season and certain rebound is expected in August and September, noted Societe Generale.