Latest estimates point to a stabilisation in industrial production in Europe in December after three consecutive months of contraction, although GDP growth figures released concomitantly paint a rather different, and much gloomier, picture. In addition, on an annual basis, industrial production growth remained firmly in the red, with a 2.3% drop in the EU and 2.4% in the eurozone. Some comfort however was provided by the European Commission’s business surveys, with improved confidence in the industrial sector and higher expectations regarding new orders.
Our view, however, is that the data will continue to display volatility, at least until a sustainable recovery takes hold. This will probably not occur until the end of this year at best, depending how quickly Europe’s economic problems can be resolved and improvements filter through to the industrial sector.
Source : Keops-Colliers International