Euro area industrial production fell 0.5% in August, the third straight monthly drop, while inflation reached 3.3% in Germany and 3.1% in France. Lagarde says France has to solve its bond-market problem at home, not through ECB buying.
Moody's Analytics notes that euro-area factory output excluding autos and pharma rose again in August and sits at its highest level since December 2023, even as headline production posted a third straight monthly drop. Source
Euro area industrial production fell 0.5% in August from July, Eurostat reported, against a forecast of 0.0% (previous: −0.3%, revised from −0.1%). That makes three monthly declines in a row. The annual rate came in at −1.1% versus a forecast of −0.1%, with July revised to −0.3% from zero. Output is shrinking just as energy pushes headline inflation back above 3%, and that pairing is what makes the ECB's next move so hard.
