Morning Forex Fundamental: EUR

Morning Forex Fundamental: EUR

'September's plunge in euro zone industrial production provides firm evidence that the economic outlook in the region is continuing to deteriorate' - Ben May, an economist at Capital Economics

Eurozone industrial production tumbled 2.5% in September

Impact High

Output from the eurozone factories tumbled to the lowest level since January 2009 in September, a sign region’s debt crisis is deepening. Industrial output slumped 2.5% on month in September, down from 0.9% increase in August.

On a yearly basis, industrial production was 2.3% lower than in September 2011. The contraction in data adds to expectation that eurozone’s economy will shrink by at least 0.4% by the end of this year.

'September's plunge in euro zone industrial production provides firm evidence that the economic outlook in the region is continuing to deteriorate,' said Ben May, an economist at Capital Economics in London.

'Fourth-quarter gross domestic product is likely to witness a renewed intensification of the recession,' said Marco Valli, chief euro zone economist at UniCredit in Milan.

The Stoxx Europe 600 Index lost 0.91 per cent to 268.14. Germany’s DAX Index fell 0.94 per cent to 7,101.92, while France’s CAC 40 Index dropped 0.89 per cent to 3,400.02.