Monday, January 24, 2011

Europe's Industrial Rebound: The Power of Mean Revision

RTT News details:

Eurozone industrial new order growth quickened in November, led by Portugal, Finland and Germany, official figures showed Monday. Industrial orders rose 2.1% month-on-month in November, after rising 1.4% in October, the European Union Statistical office Eurostat said. On an annual basis, industrial order growth accelerated to 19.9% from 14.8% recorded in the preceding month. The rise exceeded the 17.5% increase economists had forecast.
The below charts show that much of this is purely a rebound off lows, with a relatively strong relationship between those reporting strong results in 2010 off of lower figures in 2009.

Source: Eurostat


  1. Good thing I went long Estonian manufacturers a while back!

    I thought the Jets were going to snatch that game back for a while last night. Welcome to the "my team is playing golf" club. It sucks.

  2. If we didn't have mean reversion, we'd have to revise the mean.

  3. Wow !! really nice blog. It will be very useful for me. So, thanks for sharing this post.