10 December 2001, 08:41 OUTLOOK Euro zone data seen confirming picture of slowing inflation
LONDON (FWN) - Euro zone figures due for release this week are expected to
confirm the European Central Bank's view that inflationary pressures are
easing, while industrial production data should show signs of stabilisation,
economists said.
The expected decline in inflation in November is driven mainly by falling
energy prices. Economists also pointed to the moderating prices of manufactured
goods, weaker demand squeezing margins and falling agricultural prices, as
further factors driving inflation lower.
Industrial production data from France, Italy and Spain will be especially
closely watched in light of the recent huge rises in yields in the fixed income
markets, caused by the discounting of a quick economic recovery.
"The overall (French) industrial production index should post a slightly
stronger performance, helped by a gain in agri-food output," Michael Saunders,
an economist at Schroder Salomon Smith Barney said.
"(In Italy), preliminary estimates based on energy consumption point to a
rebound of industrial production in October, that should more than offset the
September drop," he added.
In Spain by contrast, industrial production is expected to continue to
drop.
German retail sales will show whether consumer sentiment in Europe's
biggest economy is holding up.
"After a pick up in spending in the spring, sales have subsequently
contracted, with non-auto spending down 0.7 pct in Q3. With consumer sentiment
sliding and unemployment rising, the background remains unfavourable heading
into Q4 when spending could fall," Nigel Anderson, an economist at Royal Bank
of Scotland said.
Elsewhere, German trade and current account data should give some
indication of how badly euro zone trade has bit hit by the global slowdown.
Economists' forecasts for euro zone indicators due Dec 10-14
AFX CONSENSUS PREVIOUS
MONDAY DEC 10 - FRIDAY DEC 14
German Oct retail sales
month-on month -0.5 pct -1.1 pct
year-on-year 0.5 pct -2.1 pct
TUESDAY DEC 11
French Nov consumer prices
month-on-month unchanged 0.1 pct
year-on-year 1.5 pct 1.8 pct
Spanish Oct industrial production
year-on-year -0.8 pct -1.7 pct
WEDNESDAY DEC 12
German Oct trade balance 7.5 bln eur 6.0 bln eur
current account -0.2 bln eur -0.7 bln eur
FRIDAY DEC 14
French Oct trade balance 0.6 bln eur 0.2 bln eur
French Oct industrial production
month-on-month -0.2 pct -0.9 pct
year-on-year 0.3 pct 0.8 pct
Italian Oct industrial production
month-on-month unchanged -0.7 pct
year-on-year -0.7 pct -2.5 pct
Spanish Nov consumer prices
month-on-month -0.1 pct -0.1 pct
year-on-year 2.8 pct 3.0 pct
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