Summary: Euro-zone industrial production up 0.2% in November, in line with expectations; down 1.9% on annual basis; German, French 10-year yields fall; expansion in three of four largest EU economies.
Following a recession in 2009/2010 and the debt-crisis which flowed from it, euro-zone industrial production recovered and then reached a peak four years later in 2016. Growth rates then fluctuated for two years before beginning a steady and persistent slowdown from the start of 2018. That decline was transformed into a plunge in March and April of 2020 which then took over a year to claw back. Production levels since early 2023 have generally declined.
According to the latest figures released by Eurostat, euro-zone industrial production expanded by 0.2% in November on a seasonally-adjusted and calendar-adjusted basis. The result was in line with expectations as well as October’s upwardly-revised figure. However, on an annual basis, the contraction rate accelerated from October’s revised rate of 1.1% to 1.9%.
Long-term German and French sovereign bond yields both finished considerably lower on the day. By the close of business, the German 10-year bund yield had shed 11bps to 2.52% while the French 10-year OAT finished 13bps lower 3.35%.
Industrial production expanded in three of the euro-zone’s four largest economies. Germany’s production grew by 1.3% over the month while the comparable growth figures for France, Spain and Italy were 0.2%, -1.5% and 0.3% respectively.