Euro area economy likely to have grown 0.6 pct in Q3, says Barclays

Industrial production of the euro area rose strongly in August by 1.4 percent in sequential terms, in line with a 1.3 percent quarter-on-quarter carry over for the third quarter, close to 1.2 percent quarter-on-quarter. This implies upside risks to the projected 0.5 quarter-on-quarter in the third quarter of this year, noted Barclays in a research report, since GDP expanded 0.6 percent sequentially in the second quarter, while confirming the picture of solid activity from manufacturing and services surveys.

“On the back of this week’s release, we have revised up our expectations for Q3 GDP by 0.1pp to 0.6 percent q/q (to 0.5 percent q/q for Q4) for Germany, implying annual revisions to 2.2 percent (+0.1pp) and 2.0 percent (+0.2pp) for this year and next, respectively. As for Italy, we highlight upside risks to our 0.4 percent q/q Q3 GDP forecast”, added Barclays.

At 18:00 GMT the FxWirePro's Hourly Strength Index of Euro was neutral at 28.0903, while the FxWirePro's Hourly Strength Index of US Dollar was bullish at 82.8556.1863. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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