Get 100% ad-free experienceEurozone Industrial Production Rebounded Strongly in MayView all comments (0)0A significant increase in pharmaceutical production has caused another rebound in eurozone production. While production is volatile given US frontloading, second quarter GDP may turn out not quite as bad as expectedEurozone industrial production has been bouncing around in recent months, with the US frontloading of eurozone goods playing no small part. In May, production jumped by 1.7% compared to April, bringing production close to its March peak.Much of the US frontloading from the eurozone is related to pharmaceuticals, as reflected in the data. Eurozone pharmaceutical production increased by 27.7% in May, a new all-time high. With pharma not impacted by tariffs so far (although there have been threats), it looks like another spell of frontloading has boosted the May production numbers. Tomorrow, eurozone trade data can shed more light on whether eurozone exports to the US indeed jumped again in May.Other sectors have seen far less pronounced movements. And since eurozone pharma production is very concentrated in Ireland, there has not been a strong uptick in other countries’ production growth. France and Italy saw declines in May, while Spain saw a small increase. Germany did see production grow by 2.2%, but that pales in comparison to the 12.4% increase in Ireland.In the months ahead, the picture for eurozone industry remains muddied by all the tariff developments. Underneath all the trade war headlines, there are some positive signs of eurozone manufacturing bottoming out, but this seems to be a slow-moving process which could easily be derailed by high tariffs. Did someone say 30%?In any case, the strong May production data suggests that second quarter eurozone GDP will not suffer as much as we previously thought from a reversal of US frontloading. With weak service sector data, there is no room for optimism though; the eurozone economy seems set for stagnation in the short term. How much Americans stock up on medicine will not change that.Disclaimer: This publication has been prepared by ING solely for information purposes irrespective of a particular user’s means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read moreOriginal PostEurozone Industrial Production Rebounded Strongly in MayView all comments (0)0Latest commentsInstall Our AppScan QR code to install appRisk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.© 2007-2025 - Fusion Media Limited. All Rights Reserved.