Eurozone activity remains lacklustre as price pressures ease

Eurozone industrial production holds up but trade surplus under pressure

German industrial production defied worst-case fears in April, but stagnation persists

Following the recent report on German industrial production, the desk interprets this as an indication of continued stagnation despite a modest uptick in activity. April saw a 0.4% month-on-month increase in industrial production, yet this remains insufficient to offset a persistently weak growth rate, with levels still 12% below pre-pandemic benchmarks. Per the full note [source], while construction activity positively contributed with a 2.4% rise, broader economic concerns fueled by geopolitical tensions and high energy costs weigh heavily on the outlook. As the macroeconomic landscape remains challenging, traders should remain cautious about sustainable rebounds in the Eurozone economy, particularly regarding EUR sentiment amidst shifting expectations.

Eurozone inflation increased in May, strengthening case for ECB rate hike

Eurozone inflation increased in May, strengthening case for ECB rate hike