In August, euro
zone industrial production came out remarkably strong, rising by 1.2% M/M, while the consensus was looking for a decline by 0.8% M/M. The previous figure was slightly upwardly revised from 1.0% M/M to 1.1% M/M. Looking at the details, production of capital (2.1% M/M), intermediate (1.7% M/M) and non-durable consumer (1.1% M/M) goods rose significantly in August, while durable consumer goods and energy stabilized in August. National data show that strength was led by a rebound in Portugal (8.2% M/M), Italy (4.3% M/M) and France (0.6% M/M), while production rose for a second straight month in France (0.6% M/M) and Ireland (4.4%M/M). In the Netherlands (-1.9% M/M), Greece (-1.4% M/M) and Germany (- 1% M/M) industrial production weakened after very strong readings in July. Both in July and August, euro
zone industrial production was surprisingly robust despite sharply weakening business confidence indicators. There is no clear indication, but in some countries, the data might have been distorted due to seasonal factors. Therefore a correction in September is not excluded, but even then, production probably lifted Q3 growth which should keep growth in positive territory in the July-September period.