Eurozone industrial production recovered at a faster than expected pace in October on durable consumer goods output, official data showed Monday.
Industrial output advanced 0.6 percent on a monthly basis in October, reversing a 0.3 percent fall in September, Eurostat reported. This was the first increase in three months and exceeded a 0.3 percent rise forecast by economists.
Even at this early stage, data indicates that industry may have contributed more to GDP growth in the fourth quarter than it did in the third quarter, Jessica Hinds at Capital Economics, said.
Nonetheless, the big picture is still that GDP growth remains far too slow to bring inflation swiftly back to the European Central Bank's target of just below 2 percent, the economist added.
According to ECB staff projections, inflation will be at 0.1 percent this year and 1.6 percent in 2016. The bank had extended its EUR 1.1 trillion quantitative easing until March 2017 to lift inflation and cushion growth.
IHS Global Insight Economist Howard Archer said today's data reinforces the belief that Eurozone GDP growth will pick up to at least 0.4 percent in the fourth quarter from 0.3 percent in the third quarter.
The recovery was driven by a 1.4 percent rise in capital goods output and a 1.8 percent increase in durable consumer goods. Production of energy and non-durable consumer goods came in at 0.6 percent and 0.4 percent, respectively.
On a yearly basis, growth in industrial production improved to 1.9 percent from revised 1.3 percent in September. Economists had forecast the annual growth to ease to 1.4 percent from September's originally estimated rate of 1.7 percent.
Data came after the Purchasing Managers' survey showed that the manufacturing upturn gained further momentum in November. The sector expanded most since April 2014, with almost all nations expanding since October.
In the EU28, industrial production climbed 0.5 percent from September and by 2.4 percent from the prior year.
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April 24, 2026 15:15 ET Economics news flow was relatively light this week even as the conflict in the Middle East continued, raising concerns for policymakers. In the U.S., spending data, initial jobless claims and pending home sales were the highlights. Business confidence in the biggest euro area economy was in focus in Europe. Inflation data from Japan gained attention in Asia.