Expectations that the European Central Bank will raise interest rates in March were raised on Wednesday with the publication of robust industrial production figures by the EU’s statistical services Eurostat.
Industrial production in the eurozone rose by 1.3% month on month in November on a seasonally adjusted basis, having fallen in the previous two months. For the EU25 as a whole, industrial output rose by 1.0%.
On a year on year basis, industrial output in the eurozone rose by 2.6%, while in the EU25 it rose by 2.1%.
The European Central Bank’s main refinancing operations rates is 2.25%, compared with an equivalent Cypriot rate of 3.25%. The marginal lending rates are 3.25% for the eurozone and 4.25% for Cyprus.
Energy rises the most
In November 2005 compared to October, production in the energy sector grew by 3.6% in the euro-zone and by 2.5% in the EU25.
Intermediate goods increased by 1.4% and 1.2% respectively. Capital goods rose by 1.4% in the
euro-zone and by 0.9% in the EU25.
Durable consumer goods grew by 1.3% and 0.9% respectively. Production of non-durable consumer goods fell by 0.3% in the euro-zone and by 0.2% in the EU25.
Ireland booming
In November 2005, and among the Member States for which data are available, industrial production rose in sixteen Member States and fell in six. The highest increases were registered in Ireland (+10.6%), Lithuania (+9.5%), the Netherlands (+5.0%) and Portugal (+3.5%), while the largest decreases were recorded in Finland (-1.6%), Hungary (-0.7%) and Luxembourg (-0.6%).
Capital goods strong Y/Y
In November 2005 compared to November 2004, production of capital goods rose by 4.1% in the euro-zone and by 3.5% in the EU25.
Intermediate goods gained 3.5% and 3.0% respectively. Production of durable consumer goods grew by 2.7% in the euro-zone and by 2.1% in the EU25.
In the energy sector production grew by 1.3% in the euro-zone, but fell by 0.2% in the EU25. Non-durable consumer goods increased by 0.5% and 0.7% respectively.
In November 2005, and among the Member States for which data are available, industrial production rose in nineteen Member States and fell in three. The highest increases were rrgistered in Lithuania (+14.8%), Ireland (+14.7%), Estonia (+10.5%) and Poland (+8.5%), while the only decreases were recorded in Finland (-3.4%), the United Kingdom (-2.5%) and Belgium (-1.2%).
