THE TAKEAWAY: Eurozone industrial production rises 0.5% during February, beats analysts’ expectations -> Weak production in Germany outweighed by 13% increase in the Netherlands -> EUR/USD stays at the same level following the report
Eurozone industrial production rose by 0.5% for the month of February, led by France and the Netherlands. The actual production beat average estimates of a 0.2% decline. However, the numbers were 1.8% lower than February of the previous year, as expected by analysts.
The numbers can be seen as a sign of economic stabilization for the Eurozone; and a drop in industrial production in Germany and Spain was offset by improved production in France and the Netherlands. The weak German numbers that were released last week were not fully represented in today’s numbers as the slump in construction output was not included in the Eurozone survey.
EUR/USD did not react strongly to the better than expected data. The pair rose and fell following the release, but later settled back down to initial levels.