Eurozone industry: Is the end of the slump in sight? - ING


According to Bert Colijn, senior economist at ING, Eurozone’s industrial production is likely to have increased in May but without an improved trade outlook, manufacturing could be in for a weak second half of the year.

Key Quotes

“Industrial production peaked in December 2017 and has been on a declining trend ever since. While the indicator is volatile and plenty of one-off factors have been impacting the industrial sector over the past year and a half, the trend is worrying. Although the reasons behind the downturn remain somewhat of a mystery, as some indicators are still pointing to decent performance, it does seem that weakening global demand and trade uncertainty have had a more significant impact than initially expected. This means more sluggishness could be on the cards. Remarkably though, this contraction in activity has not caused employment to decline. As long as that is the case, an outright eurozone recession remains unlikely.”

“Production seems sensitive to weakened global demand and trade uncertainty, not least because the decline in production coincided with falling confidence and the start of significant trade rhetoric from the United States.”

“Even though export growth is still positive, business surveys have been pointing to a contraction in orders from abroad.”

“While export growth has remained positive up to now, weaker production of intermediates used for exports indicates that weaker gross exports could well be on the cards over the summer months.”

“While the outlook for industry is clouded by quite a few mixed signals, sluggish global demand and trade concerns are expected to drag on in the months ahead. That means a swift bounce back in manufacturing production is unlikely in the second half of the year and concerns about eurozone GDP growth remain significant at least for the remainder of 2019.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD surges above 1.1100 as Trump announces steps against China

EUR/USD is trading above 1.1100, up on the day. President Trump said he orders companies to search Chinese imports for drugs. Earlier he criticized Powell's lack of action. 

EUR/USD News

GBP/USD jumps above 1.2250 on USD weakness

GBP/USD is trading close to the monthly highs above 1.2250 as the US dollar falls following Powell's hint of cutting rates and Trump's angry response. 

GBP/USD News

USD/JPY plummets to ten-day lows below 106 as Trump goes berserk on Twitter

The USD/JPY came under strong selling pressure in the last hour and erased nearly 100 pips as US President Donald Trump's latest rant on Twitter forced investors to seek refuge and ramped up the demand for safe-haven JPY. 

USD/JPY News

Gold gains more than $30, eyes 2019 highs on Trump’s tweet

Gold continues to rise sharply amid concerns about the impact of the escalation in the US-China trade war. The demand for safe-haven assets emerged over the last hours, leading to a rally in the yellow metal. 

Gold News

Powell powerless against Trump's trade wars – US braces for recession, USD set to move

"The most powerful central banker in the world" – is how we and others characterize Fed Chair Jerome Powell. While that may be true – monetary policy is reaching its limits – especially in the face of a trade war.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •