Is this as good as it gets for manufacturing in the Eurozone?

Jake Cordell
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Germany car manufacturing
Germany's manufacturing industry jumped impressively in August (Source: Getty)

The march of the Eurozone's makers sped up over the summer as industrial production rose across the single currency bloc.

Manufacturing output jumped by 1.6 per cent in August, ahead of expectations and up from a stumble in July which saw activity slip. The four biggest members of the 19-member Eurozone all reported growing activity, with Germany's heralded industrial sector growing by 3.1 per cent over the month.

Analysts said the figures will provide a modest boost to GDP, though suggested this good be as good as it gets for factories across the Eurozone.

Jack Allen, European economist at Capital Economics said: "With the impact of the UK's Brexit vote weighing on demand for Eurozone exports, and higher oil prices raising manufacturers' costs, we not expect industry to provide a major boost to the region's economic recovery."

Howard Archer of IHS global added: "Eurozone manufacturers will be wary that the positives for consumers may be diluted over the coming months as labour markets stutter and inflation creeps higher.

"Another concern will be that appreciable uncertainty over the outlook will cause businesses and consumers to be cautious in their major spending decisions, thereby constraining demand for capital goods and big-ticket consumer goods."

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