Euro zone industrial output rebounds in November: Eurostat
Compared with November 2012, industrial output rose by 3.0% in both the euro zone and the EU
Brussels: Euro zone industrial output rebounded sharply in November, offering some reassurance that a modest recovery remains on track after heavy falls in October, official data showed on Tuesday.
Industrial output in the then 17-nation euro zone jumped 1.8% in November after a fall of 0.8% in October, the Eurostat statistics office said.
In the full 28-member European Union, industrial production gained 1.5% after dropping 0.5% in October, it said.
In November, the biggest monthly gain was in Ireland with 11.7% while economic powerhouse Germany was up 2.4% and struggling France rose 1.4%.
Compared with November 2012, industrial output rose by 3.0% in both the euro zone and the EU.
Industrial output figures can be volatile but after a second monthly fall in a row in October, analysts had voiced concern the single currency bloc’s recovery appeared to be stalling.
The euro zone escaped a record 18-month recession in the second quarter with growth of 0.3%, only for this to slow to a marginal 0.1% in the third.
Analysts said Tuesday’s report was positive overall.
The figures “provide some hope that the economy might have regained a bit of momentum towards the end of last year,” said Jonathan Loynes of Capital Economics.
November’s was the biggest monthly gain since May 2010 while the 12-month rate of 3.0% was the highest for more than two years, Loynes said in a note.
“Barring a very sharp drop-back in production in December, industry is now likely to make a stronger contribution to GDP growth in the fourth quarter than it did in the third,” he said.
On this basis, the fourth quarter “will probably beat the third’s 0.1% expansion,” he said but added that an uncertain outlook meant “it would be wrong to get carried away.”
Howard Archer at IHS Global Insight said the November figures could mean that the whole economy expanded by 0.3% in the fourth quarter.
Coupled with other positive indicators, the manufacturing sector will be hoping to see an increase in consumer spending and investment, Archer said.
Like Loynes, Archer was also cautious, noting that “conditions remain far from easy for eurozone manufacturers so they still have their work cut out to generate and sustain reasonable growth.”
Fiscal policy remains largely restrictive and unemployment continues near record highs, he said.
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First Published:14 Jan 2014, 04:54 PM IST
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