Eurozone Industrial Production Drops, but Banks are Strengthening

After eurozone industrial production fell sharply in August by 1.8%, a reverse from the 0.9% rise in July, Sarah Hewin, head of European Research at Standard Chartered Bank, weighs in on what this means for the state of the region's economy. Ahead of upcoming stress test results that will be out later this month, Hewin says we are seeing improving signs about the state of the European banking sector. Hewin notes that credit is turning around, financial conditions are not as tough and banks have been cleaning up their balance sheets. She expects that banks should be in a stronger position to start lending again and there should be more confidence about the banking sector by the end of this year.