Eurozonked output

Absolutely dreadful figures from the Eurozone on industrial production this week. Year to year, the drop was a staggering 18%, with a 3.5% decline from January levels. The damage was particularly severe in the manufacturing powerhouses of Germany and France.

It has to be said that the strength of the Euro has been causing carnage for these export-led sectors. Given the relatively heavy weight of the Eurozone to manufacturing, it makes the ECB's hard stance of holding up rates (thus the Euro exchange rate) all the more perplexing.

With production spiralling down, I don't think inflation is a big concern over the coming once. The potential bankruptcy of swathes of Europe's manufacturing (and intellectual capital) base is.