Euro zone in­dus­trial out­put re­turns to strong growth in Jan­uary

The Pak Banker - - MARKETS/SPORTS -

Euro zone in­dus­trial pro­duc­tion grew sharply and by more than ex­pected in Jan­uary, driven in par­tic­u­lar by in­creased out­put of cap­i­tal goods, such as equip­ment and ma­chin­ery, the Euro­pean Union sta­tis­tics of­fice said on Mon­day.

In­dus­trial pro­duc­tion in the 19-mem­ber sin­gle cur­rency zone was 2.1 per­cent higher in Jan­uary than in De­cem­ber, Euro­stat said, and grew by 2.8 per­cent year-on-year.

The data were sig­nif­i­cantly higher than ex­pec­ta­tions and fol­lowed two months of de­clines. Econ­o­mists polled by Reuters had fore­casts a 1.7 per­cent month-on-month in­crease, and an out­put rise of only 1.4 per­cent on a yearly ba­sis.

Euro­stat also re­vised up the De­cem­ber fig­ures, which now showed a monthly out­put fall of only 0.5 per­cent in­stead of the 1.0 per­cent de­crease es­ti­mated ear­lier. Year-on-year, the fig­ure was re­vised up sharply to a de­cline of 0.1 per­cent from a pre­vi­ous es­ti­mate of a 1.3 per­cent drop. Out­put growth in Jan­uary was driven mostly by cap­i­tal goods, an in­di­ca­tor of fu­ture in­dus­trial in­vest­ments, which saw a 3.9 per­cent monthly rise.

Pro­duc­tion in­creased 2.4 per­cent for both en­ergy and non-durable con­sumer goods. Out­put of durable con­sumer goods, such as fridges or cars, went up 1.3 per­cent. All ma­jor economies of the euro zone ex­panded pro­duc­tion in Jan­uary, com­pared to the pre­vi­ous month, re­vers­ing a two-month neg­a­tive trend in the euro zone.

In Ger­many, the bloc's largest econ­omy, in­dus­trial out­put rose 2.9 per­cent in Jan­uary on a monthly ba­sis. In France pro­duc­tion grew 1.4 per­cent, and in Italy out­put by 1.9 per­cent.

Buck­ling the trend, Spain, the fourth big­gest econ­omy of the euro zone, ex­pe­ri­enced a 0.2 per­cent in­dus­trial out­put de­crease on a monthly ba­sis.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.