Monday, November 14, 2011

European Recession?

Expect there to be a larger focus on European economic data in the coming months. With that in mind, Bloomberg details European industrial production for September:
European industrial production declined the most in 2 1/2 years in September, led by capital and consumer goods, as the sovereign-debt crisis pushed the economy toward a recession.

A few things to note in the above...
  • Germany appears to have been severely impacted by broader European austerity
  • Italy was crushed
  • Eastern Europe (an area that was initially impacted more by the crisis) saw positive growth in industrial production
Warning: While my guess is the above is more of a trend than a blip, the data is backward looking (over a month ago) and just one data point, thus it will be important to see how this progresses.

Source: Eurostat