Eurozone week ahead: Budgets, inflation and industrial production – Danske Bank
|Data to be released in the Eurozone next week include Industrial Production, the ZEW survey and inflation. Analysts at Danske Bank expect another dire set of industrial production figures for August and hope the ZEW prints bring better news for October
Key Quotes:
“Next week will bring the August industrial production figures on Monday. The latest year’s crumbling production data has mainly been driven by Germany, where production in August fell 4.0% y/y. Hence, the euro area print is not likely to bring any cheer, showing the industrial recession dragging out in Q3.”
“On Tuesday we get the first sentiment indicators for October when the ZEW prints are due out for both the euro area and Germany. It will be interesting to see whether the rebound in expectations and the fall in current situation continues.”
“Also on Tuesday, we have the official deadline for euro area countries to submit their 2020 budget plans to Brussels. The focus here will be particularly on how the Italian budget is received, with the government planning a slightly higher budget deficit of 2.2% of GDP than previously agreed with the Commission in June. However, we currently do not envision a replay of the budget fight to the same degree as in 2018.”
“Wednesday will bring the final September inflation figures and with it a decomposition of the different categories, which will show us what drove the small uptick in core inflation to 1.0%.”
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