Economic Data Preview: Euro Zone Industrial Production.

Euro Zone Industrial Production is expected to continue to contract, shrinking -1.4% in the year through September, the lowest in over 5 years. Analogous metrics from Germany, France and Italy all registered greater-than-expected loses as firms cut back production in the face of dwindling global demand. Paradoxically, at least Germany posted a better-than-expected external balance in September as the cheaper Euro boosted exports. One way to reconcile this may be to suppose that the added export shipments are clearing existing inventories but producers are not topping them up with new merchandise. If this is indeed the case, it means that the economic stimulus from the decline in the Euro may be in part squandered as supplies dry up, slowing the pace of what could be an export-led Euro Zone recovery.


Source : Daily FX