Industrial Production Rises, Delivering Market Comfort ahead of Economic Sentiment and GDP Numbers
It’s been a busy morning on the economic calendar, with stats from China and Japan in focus in the early hours. Following the RBA monetary policy decision, the German economy was in the spotlight going into the European open.
Industrial Production
In October, industrial production increased by 2.8%, reversing a 0.5% decline from September. Economists had forecast a 0.8% rise.
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According to Destatis,
- Production in industry excluding energy and construction was up by 3.2%.
- Within industry, the production of capital goods showed an increase of 8.2%.
- The production of motor vehicles, trailers, and semi-trailers was up by 12.6%.
- There was a 0.4% decline in the production of intermediate goods and a 0.1% fall in the production of consumer goods, however.
- Outside of industry, energy production rose 0.9% and production in construction up 1.2%.
- Compared with October 2020, industrial production was down by 0.6%.
Market Impact
Ahead of today’s stats, the EUR had risen to a pre-stat high $1.12966 before the reversal.
In response to the production figures, the EUR rose to a post-stat and current day high $1.12984 before falling to a post-stat and current day low $1.12535.
At the time of writing, the EUR was down by 0.21% to $1.12626.
Next Up
ZEW Economic Sentiment figures for Germany and the Eurozone and GDP numbers for the Eurozone.
Later in the day, unit labor costs, nonfarm productivity, and trade data from the U.S will also draw interest.