Industrial producer prices down by 1% in both euro area and EU

In January, industrial producer prices fell by 1% in the euro area and the European Union (EU),  when compared to prices in December last year, according to the latest data release from Eurostat.

The fall in industrial costs was higher by a slender 0.2%, as in December they were reduced  by 0.8%.

Year on year, the price fall was more evident, as in contrast to January 2015, producer expenses fell by 2.9%.

The main causes of the price fall in January in the euro area , was found in the energy sector, which slid by 3.2%, and 0.3% for intermediate goods.

While prices remained stable for non-durable consumer goods, and increased by 0.1% for capital goods, and additionally by 0.4% for durable consumer goods. 

Whereas in the EU, the reduction in costs arrived mainly from a 3.4% fall in the energy sector, and 0.3% for intermediate goods, matching the euro area.

Prices remained stable for non-durable consumer goods, and increased by 0.1% for capital goods, and by 0.4% for durable consumer goods.

The Netherlands and Greece suffered the largest price declines, reduced by 3.1% and 2.9% respectively, with Estonia,  4.5% and Denmark reaching 1.7%,  having the highest price increases. 

Euro Turbulence Against Major Currencies 

The euro has began to day as it left off yesterday, with a chaotic relationship in  comparison to other main currencies.

So far today GMT, the euro began by buying $1.088, before sliding to a morning nadir of purchasing $1.085.

Since that point was reached, then euro has fought back against sterling, and is now buying $1.087.

Against the UK pound, the euro fell to buying just over £ 0.776 at 6AM GMT, before crawling up to £0.78.

FC Exchange analyst Daniel Wray highlighted that even though unemployment fell yesterday in the euro area by 0.1% to 10.3%, Markit revealed that  euro area manufacturing PMI hiked only slightly above the forecast of 51 at 51.2.

This was a the lowest PMI in manufacturing for a year, and Wray opined that more positive data from the US and the UK outweighs the latest euro area figures.

 

Germany Reveals that the United States is Biggest Trade Partner 

Official figures have disclosed that the United States is Germany’s most significant trading partner, with the volume of goods traded between the two nations reaching the value of 173.2 billion euros in 2015.

The results complied factored in the total worth of the full flow of exports and imports between the two nations.

While Germany exported the most to the United States out of all their major trading partners, climbing to EUR 114 billion, the amount of imports was EUR 59 billion.

More imports were received from China EUR 92 billion, the Netherlands EUR 88 billion, and then France EUR 67 billion.

France was the second most influential trading partner for Germany, as they exported EUR 103 billion over the Franco-German border, second only to the United States.

The Netherlands was the third highest turnover trade partner for Germany, reaching a total of EUR 167.6 billion, with exports a fourth highest EUR 80 billion.

The United Kingdom was the third highest export trade partner worth EUR 89 billion, whereas imports with Britain was the ninth highest in the list, with EUR 38 billion of goods brought in.