Week ahead’s industrial data likely to be gloomy

MANUFACTURING figures across Europe are released this week, and economists expect a gloomy outlook.

October’s figures are expected to show an oncoming recession in the Eurozone and weakness in the surrounding economies.

Barclays Capital predicts Italian industrial output – data out on Thursday – will be flat in the month to October, “consistent with a decline of 0.5 per cent year on year”.

Spanish production is set to fall 1.8 per cent in the month, and the UK is forecast to see a 0.3 per cent fall in manufacturing output.

French output is expected to be up 0.1 per cent in the month, but down one per cent annually. However, Barclays Capital forecasts a 0.6 per cent monthly rise in Germany, rebounding from a 2.7 per cent drop in September.

The data “should provide further evidence the Eurozone is likely to contract in the fourth quarter,” said Capital Economics’ Ben May.