Euro area – Industrial production likely registered modest growth

Euro-area industrial production, ex construction (IP) likely registered 0.3% m/m growth in April, which translates into a 1.1% increase compared to a year ago. This is in line with the most recent six-month average growth. 

Data already released shows that German IP rose in April. However, French and Italian IP declined. The euro-area manufacturing PMI signals that the current pace of modest growth will likely persist in the near term. 

Encouragingly, IP in Spain and Italy is picking up after years of stagnation. The depreciation of the euro and lower energy prices represent likely tailwinds for manufacturing, the largest component of IP.