World Economy

Eurozone Industrial Output Rebounds

Eurozone Industrial Output ReboundsEurozone Industrial Output Rebounds

Eurozone industrial production rebounded in April on a monthly basis after two consecutive falls, rising more than expected mostly because of a surge in the output of durable consumer goods, such as cars, the European Union statistics office said on Tuesday.

Industrial production in the 19-member single currency bloc was 1.1% higher in April than in March, above the forecast in a Reuters poll of economists of a 0.8% rise.

The figure sends a message of confidence about the eurozone economy and inverts the negative trend started in February, when output decreased by 1.2%, and continued in March which recorded a slightly upwardly revised 0.7% drop in industrial production (from a previous estimate of -0.8%).

Year-on-year, eurozone industrial output rose in April by 2%, also in this case significantly more than market estimates of a 1.4% increase, and much more than the 0.2% growth recorded the previous month.

Eurozone April monthly output increased mostly because of the output of consumer durable goods, such as cars and fridges, which rose 2.3% after a 0.8% drop the previous month.

All other sectors recorded increases in production. Output of capital goods, such as machinery, went up by 1.9%, and production of non-durable consumer goods increased 1.6%.

Output of energy products increased 0.3% and production of intermediate goods rose 0.4%.

The two largest economies of the eurozone saw a rebound in their April monthly output after two months of fall, with production in Germany growing by 1.1%, and in France by 1.2%. Italian industrial production increased 0.5%, after having been flat in March.