- Weak data in Euro area last week
In the Eurozone last week, annual inflation slowed down for the third consecutive month, and industrial production declined. However, employment showed some positive signs.聽
The Euro area annual inflation rate was 1.1 percent in February, decreased from 1.3 percent in January and also down from the 2.0 percent seen in February 2017.聽
European Union (EU) annual inflation was 1.3 percent in February 2018, down from 1.6 percent in January. A year earlier the rate was 2.0 percent, according to data published by Eurostat, the statistical office of the European Union.聽
Annual inflation in the currency union continues to fall short of the European Central Bank鈥檚 target of nearly 2 percent. Persistent weak inflation is one of the main factors preventing the ECB from normalizing monetary policy.
Seasonally-adjusted industrial production in January 2018 fell by 1.0 percent compared with December 2017 in the euro area and by 0.7 percent in the European Union, according to Eurostat estimates.聽
In December 2017, industrial production rose by 0.4 percent in the euro area and by 0.3 percent in the EU month-on-month.
However, the number of employed increased by 0.3 percent in the euro area and by 0.2 percent in the EU in the fourth quarter of 2017 compared with the previous quarter.
聽In the third quarter of 2017, employment increased by 0.4 percent in the euro area and by 0.2 percent in the EU.
-The week ahead
This week, production in construction and foreign trade data will be followed in the European economy.
Furthermore, markets will focus on the European Central Bank's economic bulletin and G20 Finance Ministers and Central Bank Governors meeting in Buenos Aires, Argentina.