• Prior +1.3%
• Industrial production Y/Y +0.8% vs -1.0% prior

This is not a market-moving release but it’s a nice beat on estimates and another confirmation of a pick up in economic activity. Industrial production has been recovering from the May 2024 trough at -7.7% and it’s now back into positive territory.

ECB’s Schnabel has been mentioning the possibility of a rate hike in 2026. If things keep improving and inflationary pressures intensify, we might indeed see a rate hike in 2026, and potentially from other central banks too.