German Industrial Output Surges in August While Swedish Inflation Picks Up in September

Germany posted a sharp rebound in industrial production in August, with output rising 2.0% month-on-month against a forecast of 0.5% and a prior decline of 1.1%. On a year-over-year basis, working-day adjusted output rose 2.3%, well above the 0.7% estimate and reversing a 1.6% contraction the previous month, signaling a meaningful recovery in Europe's largest economy.

Sweden's September inflation data came in just below expectations but still showed a significant acceleration from August. Headline CPI rose 0.9% month-on-month and 1.1% year-on-year, compared to estimates of 1.0% and 1.2% respectively, and up sharply from 0.3% the prior month. The Riksbank's preferred measure, CPIF, rose 0.9% on the month and 1.5% annually, both in line with forecasts, while CPIF excluding energy came in softer than expected at 0.5% year-on-year and 0.1% month-on-month against estimates of 0.7% and 0.3%. Sweden's budget balance swung to a deficit of 23 billion kronor in September from a surplus of 61.9 billion kronor in August.

Norway's industrial production rebounded 1.0% month-on-month in August after a steep 7.1% drop the prior month. France's trade deficit for August narrowed to 6.1 billion euros, better than the 6.5 billion euro forecast and the prior 6.6 billion euro shortfall.