Industrial output in the Eurozone recoiled last month, which left analysts optimistic which suggests further evidence that the 17-nations are finally crawling out of economic recession. This was evidenced by Eurozone industrial production last month jumped 0.7pc from the second quarter when it fell 0.2pc according to the figures tallied by the European Union’s office Eurostat. There was also growth in the wider 27-member EU, which saw a optimistic output growth of 0.9pc from a month earlier which fell by 0.4pc.
Growth figures for the second quarter are due anytime this week and are expected to show a switch out of the recession which further bolster analysts’ prediction that the Eurozone economy will continue to expand by 0.2pc, reversing the 0.2pc contraction in the first quarter.
The figures are the latest suggestive turning corners of the Eurozone in terms of retail sales, consumer and business confidence and now industrial output which is at present very encouraging after months in pessimism.
Today’s report coincided with figures from Germany wherein the closely monitored investor confidence index which were calculated by the ZEW economic institute wherein it rose 6.7 % to 42 points at the start of the 3rd quarter. The report is considered the best reading by far since the start of the year which beat analyst forecast for an increase to an estimated 40 points.
The first signs of an end to recession in critical Eurozone countries may have contributed to the indicator’s rise. Moreover, the economic optimism is supported by a heavily robust domestic demand in Germany.
The industrial output figures ultimately confirmed a good return of the much needed growth in the Eurozone in the second quarter. However, investors must not be too complaisant since the industrial output figure was substantially because of Germany’s 2.5pc gain which was the largest by far in Europe.
Ireland was leading the way in terms of industrial output up 8.7p, followed by Romania, which was around +5.7pc and Poland with just 3.1pc. Moreover, twice bailed-out Greece gained 2.5pc which was reinforced by data which showed the pace of its economic downturn easing which was still showing a negative predisposition.
Finally, the biggest losers in the second quarter were the Netherlands, Portugal and France with 4.1pc, 2.8pc and 1.5pc drop in figures respectively in the same order.