- Jack Allen, Capital Economics
Industry figures for the single currency area could bring third-quarter economic growth in the 19-country Euro zone. According to the data, the Eurozone's industrial production went up 1.6% in August following a revised 0.7% decrease during the previous month. Moreover, the increase outperformed expectations of a 1.4% rise and the annual advance of 1.8% was also above consensus forecasts. Although, the solid recovery has demonstrated German production for August with output rising 2.5% on a monthly pace, while new orders also strengthened and there was a robust recovery in exports.
Overall the jump in production is unlikely to remove concerns among policy makers over the impact of Brexit on the Euro zone economy. Although, it may take many months to translate currency fluctuations to canceled or reduced export orders, while the markets are preparing for the busy Christmas shopping period. The industrial figures also have a tendency to be volatile, thus economists are careful not to read too much into one month's data. Also, many economists supposes that the outlook for the sector remains problematic.
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