European Industrial Production, Or Lack Thereof by Jennifer Thomson, Gavecal Capital
Today’s somewhat underwhelming release of industrial production statistics in a number of European countries is a poorly-timed reminder that Germany is the only country that has managed to see any real improvement over the last ten years (and, even there, it has not surpassed previous highs):
Even though industry only accounts for about 25% of value added in the Euro area (a figure comparable to that seen in Japan), a stronger recovery would certainly be an encouraging sign. Though recent surveys paint an encouraging picture, the hard data do not seem to support that view…
Which has negative implications for the Euro area’s GDP (2Q preliminary data scheduled for release in mid-August):
