- Claus Vistesen, Pantheon Macroeconomics
Euro zone industrial production recovered in October following two months of declines. The output of factories, mines and utilities across the 19-country currency bloc rose 0.6% in the reported month after the 0.3% decrease in September. Measured on an annual basis, industrial production increased 1.9%, up from the 1.3% rise in September. The fastest annual growth was reported in Ireland where production surged 14.6%. It also climbed at healthy rates in France, Spain and Italy, but dropped 0.1% in Germany, the Eurozone's star economy.
Euro zone GDP data last week showed the region's economy grew 0.3% in the third quarter following a 0.4% expansion in the June quarter. On an annual basis, the combined gross domestic product of the 19 countries that use the Euro increased 1.6%. In order to underpin growth and inflation, the European Central bank announced additional stimulus measures, while ECB President Mario Draghi cited developments in the global economy as major headwinds that may prompt a further expansion of a bond-buying programme that was introduced in March. Nevertheless, the central bank raised its GDP growth outlook for this year, with the Euro area's economy expected to expand 1.5%.
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