Euro zone industrial production dropped in November for a third consecutive month. While the November decline was somewhat softer than expected, the previous figure was downwardly revised. On a monthly basis, industrial production fell by 0.1% M/M, whereas the consensus was looking for a decline by 0.3% M/M. The details show that weakness was based in durable (-0.8% M/M) and non-durable (-0.8% M/M) consumer goods. Energy production rebounded by 0.5% M/M, while production of intermediate and capital goods stabilized in November. Also national data show a mixed picture as production dropped in Ireland (-9.4% M/M), Portugal (-1.6% M/M), Spain (-1.0% M/M) and Germany (-1.0% M/M), while it picked up in Greece (1.1% M/M), France (1.1% M/M) and Italy (0.3% M/M). As industrial production dropped in both October and November, production was likelya drag on GDP in the fourth quarter. The manufacturing PMI picked up in December, but remains below the 50 benchmark level, suggesting that the sector continued to contract in December, but the nadir might be behind us.