Disappointing industrial data from Italy and Spain
The Daily Telegraph reports on fears that the eurozone could be headed for a mounting crisis, after disappointing industrial data from Italy and Spain added to the already dismal figures from Germany and France this week.
Industrial production in Italy fell by 1.6pc in November from the previous month, and was down 2.6pc on a year ago – the biggest fall since October 2014. The sharp decline was significantly worse than the 0.3pc drop many economists had been expecting.
In Spain output contracted by 1.5pc. German industrial production was down 1.9pc in November, and output dropped 1.3pc in France. The newspaper explains that Industrial production is a vital measure of the output of the industrial sector, which typically includes manufacturing, utilities and construction and is an indicator of the health of a country’s economy.
These latest figures from Spain and Italy mean the eurozone’s four biggest economies, which represent three-quarters of the bloc’s GDP, all suffered declines in industrial production in November, raising fears that it could be headed for trouble.
CNN last week carried the story that the calm and outward vitality could well be illusory and that the next debt crisis, or another calamity, would strand the lower-income countries, mostly in southern Europe. This is in addition to talk of a German “Dexit” from the eurozone.