Euro Area's industrial output likely to strengthen in July

The July increase in Euro Area's IP only partially offset the weak momentum observed at the end of Q2, as the 3m/3m growth rate would still print in negative territory (-0.3%). The picture is not uniform across countries. Germany and Spain have seen solid increases in national IP for July (both yoy and mom) and production in Italy exceeded expectations.

"In July,  Euro Area's industrial activity in the euro area is expected to have risen by 0.6% mom and 1.1% yoy wda. These projections are based on available country data which accounts for over 90% of euro area IP. This rise is due to both increased household consumption domestically, and stronger export demand from the US", says Societe Generale. 

However, there was an unexpected drop in France (-0.8% mom), as well as decreases in Finland and Slovakia, which limit our expectations for the euro area as a whole.