Mkts Overestimate Feb IP for 3rd...........>

EMU DATA: Mkts Overestimate Feb IP for 3rd Straight Feb; Energy Boost Not Enough

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Despite a snow-induced energy output boost, euro area industrial production

contracted for the third straight month in February and came in under analysts

expectations for the third straight February. Output was down 0.8% on the month,

with a 6.8% m/m boost in energy production unable to offset the falls in the

other major sub-categories. Output of capital goods, sensitive to prices of

metals like steel, fell 3.6% on the month. The monthly result meant output on

the year expanded by 2.9%, below analysts' expectations for a 3.5% y/y rise. MNI

previously highlighted the markets' slight bias to overestimate Feb y/y IP and

the 0.6pp downside surprise this February was roughly in line with the historic

Feb downside surprise average over the past decade(0.5pp).