Euro Area Industrial Production YoY

Info

History

Chart

Impact:

Low

Source: EUROSTAT

Next Release:

Date:

Period: May

What Does It Measure?

Euro Area Industrial Production Year-over-Year (YoY) measures the change in the output of the industrial sector compared to the same month in the previous year. It primarily assesses production levels in manufacturing, mining, and utilities, and serves as a key indicator of economic health and industrial capacity.

Frequency

The Euro Area Industrial Production YoY is released monthly, providing both preliminary and finalized figures, typically published on the second working day of the following month.

Why Do Traders Care?

Traders closely monitor this indicator as it provides essential insights into the economic performance of the Euro Area, influencing currency values such as the Euro (EUR), as well as stock market performance. Stronger-than-expected readings can be bullish for the Euro and equities, while weaker results may lead to bearish sentiments in financial markets.

What Is It Derived From?

The indicator is derived from data collected through surveys of industrial enterprises across the Euro Area, focusing on their production levels, capacity utilization, and performance in the relevant sectors. This data is aggregated and analyzed to form a diffusion index, which gauges the overall output levels relative to the previous year.

Description

Preliminary reports of industrial production reflect early estimates based on collected data but are subject to revision, with final reports providing a more accurate representation after further analysis. The YoY metric is preferred as it effectively eliminates seasonal effects and reveals long-term trends, making it relevant for traders assessing the health of the manufacturing sector.

Additional Notes

This indicator is often viewed as a coincident economic measure, providing timely insights into current economic conditions alongside other indicators like GDP growth. It can indicate shifts in industrial activities that might correlate with changes in consumer demand and investment trends, both within the Euro Area and globally.

Bullish or Bearish for Currency and Stocks

Higher than expected: Bullish for EUR, Bullish for Stocks.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number	Better than forecast for the currency (or previous revise better)
Red Number	Worse than forecast for the currency (or previous revise better)
Hawkish	Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish	Favors lower rates to boost growth, weakening the currency but lifting stocks.

Date	Time	Actual	Forecast	Previous	Surprise