Industrial producer prices in the euro area and EU experience a decline in May 2023, reflecting ongoing challenges in the sector.
Industrial producer prices in the euro area and the European Union (EU) experienced a decline in May 2023, according to estimates from Eurostat, the statistical office of the European Union. The data reveals that industrial producer prices fell by 1.9% in the euro area and by 1.8% in the EU compared with April 2023.
This decline follows a significant drop in prices observed in April 2023 when they decreased by 3.2% in the euro area and by 3.1% in the EU. However, the May figures indicate a slight improvement, albeit with a continued downward trend.
When compared with May 2022, industrial producer prices in May 2023 recorded a decrease of 1.5% in the euro area and a smaller decline of 0.5% in the EU. These figures reflect the ongoing challenges faced by the industrial sector in terms of pricing dynamics and market demand.
Looking ahead, there are concerns about the short-term outlook for industrial producer prices. The current data does not suggest a significant rebound in the near future, as the decline in prices persists. This scenario indicates a bearish sentiment in the industrial sector, highlighting the challenges faced by manufacturers and producers.
In conclusion, the industrial producer prices in the euro area and the EU experienced a decline in May 2023 compared to both the previous month and the same period last year. The continuous downward trend raises concerns about the future trajectory of industrial prices, suggesting a bearish outlook for the sector in the short term.
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.