The Euro has tumbled against the Pound and US Dollar after industrial output data for the region showed a sharp decline, renewing fears that the Eurozone recovery is far more fragile than was being hailed by economists who have – in recent months – hailed the Eurocrisis as ‘over’.
The data published on Thursday by the European Union’s official statistics agency, Eurostat shows that industrial production across the region fell by 1.5% in July a figure that is far worse than the market’s expectations for a decline of just 0.1%. Eurostat said that it was the biggest fall since September 2012.
On a year-on-year basis, industrial production tumbled by 2.1% compared with July 2012; again the experts had been expecting a fall of just 0.1%. The last time output was at such low levels was in April 2010.
The sharp decline is being blamed on sizable falls in output by France, Germany and Italy. It doesn’t bode well that the region’s biggest three economies all posted weak production figures. All together those three economies comprise a full two-thirds of the Eurozone’s entire economic output.
Of particular concern was the 2.3% production fall recorded in Germany often nicknamed the regions engine, any sign of slow down there is likely to have negative consequences for the wider area.
Italian industrial output plummeted by 1.1% dampening hopes that the country was close to clambering out of its longest recession since the Second World War. The data was far worse than all estimates made by forecasters with the general consensus being a rise of 0.3%; it was its worst fall since November 2012.
Current Euro (EUR) Exchange Rates
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3290 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8403
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6305
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1896 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6953
(Correct as of 11:00 am GMT)