And the dollar falllsss, and the markets rrrriseee...?? abslute madness...?

LONDON—Euro-zone industrial output declined the most in three years in November, pulled lower by countries in the region's south facing recession as they attempt to cut debt and deficits through austerity policies. The decline is a further indication that the wider economy could contract for a third consecutive quarter in the final three months of 2012 as fiscally frail countries struggle with still-high borrowing costs and demand for goods suffers amid continuing job cuts. Output dropped 3.7% from a year earlier, the biggest decrease since November 2009, when output slumped 7%, Eurostat, the official European statistical office said Monday. Industrial output fell 0.3% in November compared with October, the third consecutive slide on a month-to-month basis. The yearly decline was due to weakness across the board with production of intermediate and capital goods falling at the steepest pace since 2009. In October, industrial output retreated 3.3% on the year and 1.0% on the month, Eurostat said. The October data were revised after previously being reported as falling 1.4% on the month and 3.6% on the year. The November figures were weaker than expected. Economists surveyed by Dow Jones Newswires last week projected the data to show industrial output rose 0.2% on the month and fell 3.2% on the year. The data provide further evidence that the economy of the 17-nation currency bloc contracted for a third straight quarter in the final three months of 2012. "November's euro-zone industrial production data provided further strong signs that the recession in the region as a whole intensified in the final quarter of last year," said Ben May, European economist for Capital Economics. Ireland, Greece, Spain, Italy and Portugal all saw production decline in November compared with October. Italy also published its full industrial production release Monday. Output fell 1.0% on the month and by 7.6% on the year in November last year, a bigger fall than expected. Output has declined for six straight months in monthly terms, and 15 consecutive months on an annual basis. Italy's national statistics agency Istat said the decline was mainly due to a fall in investment and energy output. Eurostat also reported that Germany saw a meager 0.1% monthly increase in November, while in France, output grew 0.5% over the same period.