In July, industrial production dropped by 0.3% M/M in the euro zone, broadly in line with the consensus estimate. The previous figure was however upwardly revised from -0.6% M/M to -0.2% M/M. Looking at the details, the decline was led by capital goods (-1.8% M/M), but also energy (-1.2% M/M) and durable consumer goods (- 0.8% M/M) dropped. Non-durable consumer goods (0.7% M/M) and intermediate goods (0.3% M/M) rose somewhat in July. The data indicate that the euro zone economy is still very fragile and companies are still reluctant to invest. However, the report is outdated and we suspect that production has revived since. Indeed, orders have risen at a brisk rate for several months.