Euro area industrial production hints solid GDP growth in Q4

Industrial production in euro area posted a solid growth of 0.6% month on month in October. Similarly, in annual term, it increased by 1.9% year on year against 1.3% in previous month.

A sector level figure reveals, capital goods and durable consumer goods production, and manufacturing are the key driving factors the industrial output in October. Capital goods and durable consumer goods production are increased by 1.4% and 1.8% month on month respectively, while manufacturing sector increased by 0.6% m/m.

The industrial output figures give a hint that the economy will post a solid growth in Q4.

"Overall, the Q4 carryover stands at +0.3% q/q, consistent with resilient business surveys and our view of an ongoing moderate recovery (Q4 GDP forecast at +0.3% q/q)", says Barclays.