Friday, 12 July 2013

Euro Area Industrial Production Continues to Fall, Down 1.3% on Last Year

Eurostat reports,
In May 2013 compared with April 2013, seasonally adjusted industrial production fell by 0.3% in the euro area (EA17) and by 0.6% in the EU27, according to estimates released by Eurostat, the statistical office of the European Union. In April production increased by 0.5% and 0.3% respectively.
In May 2013 compared with May 2012, industrial production decreased by 1.3% in the euro area and by 1.6% in the EU27.
The falling industrial production combined with a record high unemployment rate of 12.1% signal the economic bottom is yet to be reached. Back in January this year we wrote,
Expecting an economic improvement in the euro area this year is optimistic. In fact, together with poor industrial production figures and the continued increase in unemployment, the euro area economy is likely to deteriorate further, much further. In fact, as long as the central planning committee in Brussels continues to be in charge (together with the ECB and the IMF), as long as bail outs of bust countries and banks continue with tax payer money, it will only continue to get worse. It is the main reason for the debt crises and the main reason it is not going to end any time soon.
Since then we've had the Cyprus bail-out (and bail-in with savers money!) and there could be more to come. For example, Spain, Italy, Portugal and France all have fairly high probabilities of going bust in the next five years according to professor Altman.

In short, as long as Brussels, ECB and IMF technocrats continue to rule economic policies and regulations to the extent they do, any quick turn towards prosperity and sustainable economic growth in the euro area remains unlikely.

MEP Nigel Farage describes the fundamental issues well.

From September 2012:

From June 2012:

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