Euro zone industrial production plunged for the seventh month running in November, signalling a worsening recession and strengthening market views the European Central Bank will cut interest rates deeply tomorrow.
Industrial output in the 15 countries using the euro in November fell 1.6 per cent on the month and 7.7 per cent year-on-year, the European Union statistics office said on Wednesday.
Eurostat also revised downwards its October output data to a 1.6 per cent monthly contraction from the previously reported 1.2 per cent drop and a 5.7 per cent year-on-year fall from 5.3 per cent.
The data showed industrial production was pulled down by plunging output of consumer durables and intermediate goods.
The data is in line with a steep drop in investment that helped drag the euro zone into its first-ever recession in the second and third quarters of 2008 and falling consumer confidence as concerns about jobs rise among households.
It is likely to bolster arguments that the ECB should make a deep cut in interest rates yesterday from the current 2.5 per cent to help revive the economy as inflation has already fallen below the bank's target and is seen dropping further.
Reuters