Eurozone March industrial production -4.1% vs -2.5% m/m expected

• Prior +1.5%
• Industrial production -1.4% vs +0.9% y/y expected
• Prior +2.0%

At first glance, this seems to be a big miss but the devil is in the details. The sharp plunge in industrial output largely comes from a fall in capital goods production (-15.4%), but it may appear to be a one-off adjustment on the part of Ireland's stats office. They reviewed their methodology for calculating the seasonal adjustment for industrial output and that saw a 26.3% monthly drop (26.1% annual drop) in production.

Other components also declined but not as badly with intermediate goods (-1.8%), energy (-0.9%), and non-durable consumer goods (-0.8%) all falling and only durable consumer goods (+2.8%) observing an increase in output in March.

/EUR EUR The euro (EUR) is the official currency of the European Union (EU) and 19 of 27 member states at the time of writing. It is the second most-traded currency worldwide in forex markets after the US dollar.The euro was originally introduced back on January 1, 1999, having replaced the European Currency Unit. Banknotes and physical euro coins subsequently entered circulation only in 2002.Upon its adoption, the euro replaced domestic currencies in participating EU member states. The rise in its value The euro (EUR) is the official currency of the European Union (EU) and 19 of 27 member states at the time of writing. It is the second most-traded currency worldwide in forex markets after the US dollar.The euro was originally introduced back on January 1, 1999, having replaced the European Currency Unit. Banknotes and physical euro coins subsequently entered circulation only in 2002.Upon its adoption, the euro replaced domestic currencies in participating EU member states. The rise in its value Read this Term