Thursday, October 16, 2014

16/10/2014: Euro Area Industrial Production Losing Momentum... What Momentum?..


A nice chart from Pictet, graphing industrial production in the US against the Euro area:


Everyone is talking about 'fading momentum' in euro area industrial production... my view: what 'fading momentum'? Euro area industrial output has been on a declining trend for more than 36 months now. The 'recovery' from Q1 2013 through Q1 2014 was a blip - so weak in any 'momentum' it is not worth mentioning.

The chart basically shows no gains on output in the sector for the euro area since 2000-2003 averages. If there was any 'momentum' in the series before the last couple of months, would anyone please point it out?

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