Encouraging Industrial Production Reports From Five Countries

Five countries--France, Finland, Sweden, Slovakia and Turkey--reported Industrial Production data for November, 2010, today. Even though the data are seasonally adjusted, the month to month data for industrial production still show considerable variation, as can be seen in the two attached charts. In spite of the downs in Finland and Turkey in November, the trend for all five countries is positive.

Among the three more developed economies, industrial production in France increased 2.28% in November from October which had shown a 0.21% drop due largely to the strikes that followed President Sarkozy's proposal to raise the retirement age. November industrial production in France is almost 6 % above the corresponding period of 2009. Industrial production in Sweden, not only increased 2.57% in November from October but was 13.22% above November 2009. Industrial Production in Finland declined 1.07% in November, but was still some 6% above November 2009. In none of the three countries, however, has the current level of production reached pre recession levels.

In contrast to the measured pace of recovery in production from the depths of the recession in the three developed countries, production in Slovakia and Turkey rose rapidly and, in recent months, approached or equaled pre recession peaks. Industrial production in Turkey, declined 1.24% in November but was still almost 9% above November 2009 and, at 119.6 (2005=100), it was only slightly below the pre recession peak of 121.7. The pace of recovery in production in Slovakia has been even stronger. Industrial production actually reached the pre recession peak level of 149.6 in June of this year. After a sharp drop in July, industrial production has increased with some ups and downs to 147.4 in November.