Eurozone factory output surges in April despite fiscal troubles

EUROZONE industrial production rose sharply in April, indicating that the recovery in the export-sensitive industrial sector has not yet been affected by the fiscal troubles besetting the single currency union.

Factory output rose 0.8 per cent on March, which was slightly stronger than the 0.5 per cent expected. As a result, the less volatile three-month measure remained at one per cent.

There were strong gains in both intermediate and capital goods in April but falls in both durable and non-durable consumer goods points to soft consumer spending.

ING’s Martin van Vliet said: “If production were to remain unchanged in May and June, then output would rise by around 2.1 per cent over the quarter, roughly consistent with a 0.4 per cent contribution to GDP growth.”