Industrial output lifts for Euro area
INDUSTRIAL production in the Eurozone edged up by 0.2 per cent in April, surprising economists who had expected a slight dip.
In March production had remained level across the 17-nation single currency area. Compared to the same time the previous year, industrial output was up 5.2 per cent.
“This is a better outcome than expected,” said ING’s Martin van Vliet. “But it would take some fairly strong monthly production gains in both May and June for industry to make a significant contribution to overall GDP growth in the second quarter.
“Overall, today’s production figures confirm that the Eurozone economy is slowing in the wake of high oil prices, fiscal tightening and Japan-related supply chain disruptions, but retains forward momentum,” van Vliet added.
Energy production was down 3.7 per cent on the month, yet offset by an increase of 1.3 per cent in durable consumer goods.
“Survey evidence on the Eurozone manufacturing sector is markedly weaker, with the May purchasing managers’ survey showing overall activity at a seven-month low,” noted Howard Archer of IHS Global Insight.
Across the wider European Union area, industrial production was up 0.1 per cent on the month, and 4.7 per cent from the same point last year.
Official figures on inflation and employment in the Eurozone are expected to be released by the Eurostat office this morning.