The production of industry in the eurozone rose by 0.9 percent in May compared to a month earlier. The European statistical office Eurostat announces this.

This is the strongest rise in industrial production in the euro area in four months. Economists generally expected an increase of 0.2 percent. Industrial production fell by a revised 0.4 percent in April. Industrial production rose by 0.8 percent on a monthly basis throughout the European Union, after falling by 0.6 percent a month earlier.

Production increased in almost all product groups, particularly for consumer and capital goods. Within the EU, the strongest increases were in Denmark, Ireland and France, while in Finland, Romania and Croatia there were the strongest decreases in production.

The better than expected industrial figure is a boost for the European economy, which has been weakening lately. The European Central Bank (ECB) said that it might be possible to come up with extra stimulus measures due to the cooling economy. In the financial markets, interest rates are expected to fall in September, although the ECB could move faster to an interest rate step.

ING economist Bert Colijn said in a reaction that the outlook for the industry in the second half of this year remains under pressure due to trade tensions and the slower global economy. He wonders if the ECB can wait until September to take action, given the ECB’s soft tone and possible Fed action.

Producer prices in the United States increased by 0.1 percent in June compared to the previous month. This is according to figures published by the US Department of Labor.

Economists generally expected an unchanged price level. In May, the prices that American manufacturers charge for their products also increased by 0.1 percent.

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