Eurostat: Industrial production data for February
Overview:
Industrial production (IP) data for February in the Euro area was ambiguous. On the one hand, the figures were positive showing IP growth on a y-o-y basis accelerating from 1.0% in January to 4.1% in February. On the other hand, the January reading was downwardly revised significantly from an original 1.8% y-o-y. Moreover, on a m-o-m seasonally adjusted (SA) basis IP growth decelerated to 0.9% in February from 1.6% in January. The relatively strong y-o-y numbers are flattered by a positive base effect from the deep contraction in IP recorded last year. However, despite the inevitable volatility in m-o-m numbers these have now shown ten straight months of positive growth. The data, then, confirms the view of a sustained, if patchy, economic recovery rather than a significant risk of a double-dip recession.