Economic data released today strengthened the view that economic activity in the Euro zone is decelerating at strong pace.
The first negative indication came from the German industrial production data for November. Industrial production declined by 1.9% m/m and 4.7% y/y. Consensus estimate was for a 0.3% m/m increase. The data follows the lower than expected factory orders data released yesterday (-0.1% m/m). The second negative indication came from the European Commission Economic Sentiment index. It fell from 109.5 to 107.3, lower than market expectations for decline to 108.2. Despite remaining at a value in line with a 2.4% y/y GDP growth, the index pointed to a marked deceleration of economic growth in early 2019.