Industrial production in January stays in the green zone in Europe despite the Coronavirus emergency

The statistical office of the European Union, Eurostat, released its monthly report on industrial production in the euro area (EA19) on Thursday. The day showed industrial production to have expanded in January in the euro area despite the Coronavirus emergency that is disrupting global business operations.

According to Thursday’s data, industrial production climbed by 2.3% in the euro area on a monthly basis in January. December’s reading was capped at a 1.8% decline. Analysts had forecast improvement in industrial production in January but the growth was estimated at a much lower 1.4% only.

Industrial Production In EU27 Climbed 2.0% In January

The broader measure of industrial production in all of Europe (EU27), on the other hand, climbed 2.0% in January. In December, the reading for EU27 was capped at a 1.6% decline.

Thursday’s data also highlighted a 1.9% growth in industrial production in the Eurozone in January as compared to the same month last year. On a year over year basis, EU27 posted a 1.5% increase instead.

The euro area posted a 3.2% monthly growth in January in terms of intermediate goods. On the capital goods front, the increase came out at 2.6%. EA19’s monthly growth in non-durable consumer goods was reported at 0.8% while a 0.7% growth in durable consumer goods was also seen in January. However, energy production remained weighed in January noting a 0.1% monthly decline.

Data for EU27 showed a 3.2% growth in intermediate goods on Thursday while a 2.1% increase in capital goods was recorded in January. EU27 printed a 1.1% growth in durable consumer goods and a slightly lower, 0.7% increase in terms of non-durable consumer goods. Energy production also climbed by 0.1% in the EU27 in January.

Ireland Recorded The Best Figure For Industrial Production In January

Ireland took the lead among the member states with the highest reading for industrial production in January at 5.7%, followed by Hungary (4.6%) and Slovakia (4.5%). Denmark, on the contrary, took the lead in the highest decline in industrial production recorded at 2.1% in January. It was followed by Latvia (1.9% decline) and Lithuania (1.8% decline).

The forex market remained broadly volatile in the past week with the EUR/USD currency pair surging close to 1.15 level at the start of the week. It was then followed by a downward rally that touched the 1.1055 level. The pair finally closed the week at 1.1102 level on Friday.