Friday, December 22, 2006

Forex News: 22.12.2006 Industrial orders were below expectations in the euro area in October

The index of industrial orders in the euro area fell in October by 0.6% at the monthly rate and rose by 12.5%, compared with October 2005, Eurostat, the Statistical Office for the European Communities reported today. The analysts expected industrial orders to rise in October by 0.5% in a month and 10.4% in a year.

The index of industrial orders, reflecting the change of new orders for products of the European manufacturers, dropped a second month. In September, the index of industrial orders in the euro area was -1.4% in a month and +7.3% in a year (revised from -1.3% and +7.6% in a month and year respectively).

The market takes the index of industrial orders into account because it reflects the prospects of economic growth. The index drop will contribute to the reduction of industrial output and, as a result, slowing economic development in the manufacturing sector of the euro area.


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