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21 Dec 2015
Germany: Keep your eyes on the Industrial production and inflation data - TDS
FXStreet (Delhi) – Research Team at TDS, suggests that the release of industrial production and inflation data will be the key areas to focus as far as German economy is concerned.
Key Quotes
“Germany November Industrial Production (8 Jan): Early indicators suggest a small move down in German manufacturing IP in November (-0.2% m/m) following a strong 0.6% gain in October. Motor vehicle production fell 10% on the month, which will offset other factors like stronger foreign demand. Looking forward, we can expect further downside risks to manufacturing as VW shuts down for an elongated period in December and January.
Germany December Inflation (4 Jan): Even with the sharp decline in oil prices in December, we see German headline inflation jumping from 0.3% y/y in November to 0.6% y/y in December as last year’s base effects pass out of the calculation. Looking into 2016, the recent sharp leg down in oil prices will tame some of this base-effect influence, but the direction will still be upward.”
Key Quotes
“Germany November Industrial Production (8 Jan): Early indicators suggest a small move down in German manufacturing IP in November (-0.2% m/m) following a strong 0.6% gain in October. Motor vehicle production fell 10% on the month, which will offset other factors like stronger foreign demand. Looking forward, we can expect further downside risks to manufacturing as VW shuts down for an elongated period in December and January.
Germany December Inflation (4 Jan): Even with the sharp decline in oil prices in December, we see German headline inflation jumping from 0.3% y/y in November to 0.6% y/y in December as last year’s base effects pass out of the calculation. Looking into 2016, the recent sharp leg down in oil prices will tame some of this base-effect influence, but the direction will still be upward.”