On the back of better-than-expected output figures for prominent Eurozone nations Italy and France industrial production in the 17 nation currency bloc defied economist’s expectations and increased for a second consecutive month.
The figure for August came in 0.6 per cent higher than the figure for July despite over thirty economists participating in a Bloomberg survey forecasting a 0.4 per cent decrease.
Although the month-on-month result appears to be a positive indicator of economic progress the region’s year-on-year figure for August was down 2.9 per cent. Today’s report also disclosed that industrial production in Germany – the largest economy in the currency bloc – fell by 0.4 per cent.
Conversely, the two most currently controversial nations in the Eurozone, Greece and Spain, posted industrial production increases of 2.5 and 1.3 per cent respectively.
Furthermore, economists with established conglomerate ING Bank have expressed concerns that the recorded improvement could merely be a reflection of seasonal volatility rather than a sign of resurging economic strength.
One ING economist was quoted as saying: ‘We would not exclude the possibility of a sharp reversal in September. With the global economy slowing and the fiscal squeeze in the Eurozone continuing, any upturn in Eurozone industrial activity will likely be modest.’
As of 15:30 pm
The Pound to Euro exchange rate is currently trading at 1.2391
The Pound to US Dollar exchange rate is currently trading at 1.6068
The Pound to Australian Dollar exchange rate is currently trading at 1.5692
The Euro to US Dollar exchange rate is currently trading at 1.2967
The Euro to Pound exchange rate is currently trading at 0.8069
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