Eurozone: Focus on industrial production data – RBC CM

Research Team at RBC Capital Markets, suggests that though month-on-month Eurozone’s industrial production data is volatile, it’s fair to say that momentum has been waning in the sector since the second half of 2015, a trend disguised to some extent by a very strong start to 2016.

Key Quotes

“Having experienced a sharp decline in July, a strong recovery in output in August and September would be needed to prevent the sector, which accounts for ~20% of euro area GVA, from dragging on growth in Q3 for a second consecutive quarter.”