March factory orders up at fastest rate in decade

City A.M. Reporter
EUROZONE industrial new orders rose in March at their fastest rate in 10 years, data showed yesterday, giving a new sign that economic activity is likely to pick up strongly in the second quarter.

The European Union’s statistics office, Eurostat, said industrial new orders in the 16 countries using the euro jumped 5.2 per cent month-on-month in the Euro zone for a 19.8 per cent year-on-year rise.

The monthly rise is the highest since June 2007 and the annual increase is the strongest in a decade.

Economists had expected a two percent monthly rise and a 14.6 per cent annual gain.

Without the volatile orders for ships, planes and trains, the monthly increase in orders was 4.5 per cent and the yearly jump 20.2 per cent.

Economists have said Eurozone growth is likely to accelerate to 0.5 per cent in the second quarter.