EURO ZONE

摘要

Industry is supporting the Euro area recovery, as evidenced by November's 1.6% (m-o-m) jump in production following contractions in September and October. The y-o-y rate, meanwhile, hit 2.6% in November, although our panel's forecasts for the variable remain unchanged, possibly because December production (released after ourdeadline) fell by 0.7% (m-o-m). January's manufacturing PMI climbed from 52.7 to 54.0, underpinned by expansions in production and new orders and the periphery performing well. However, other indicators suggest that activity could be slowing more than rebounding. Inflation is of particular concern, reaching 0.7% (y-o-y) in January. Weak price pressures make it harder for insolvent countries to pay down debt.