Industrial production in the euro area increased in April, defying economists' forecast for stagnation, but the rate of growth was weakened by lower output of energy and durable consumer goods. Yet, the data has given rise to fresh hopes that the region is slowly emerging from its long-drawn recession.
The currency bloc has been reeling under the longest recession in its history, with GDP stuck in negative terrain over the last six quarters as governments resort to growth-crippling austerity measures, weakening economic activity as well as the employment market.
Seasonally adjusted industrial production rose 0.4 percent sequentially in April, statistical office Eurostat said Wednesday. Production was forecast to remain unchanged after gaining a revised 0.9 percent in March.
The outcome was positively influenced by a 2.7 percent growth in capital goods production and a 0.7 percent gain in the non-durable consumer goods output.
The effect of these contributions to the overall output was limited by a 1.5 percent fall in energy production and a 2.7 percent contraction in the output of durable consumer goods.
Compared to April 2012, industrial production declined 0.6 percent, which was slower than the 1.4 percent decrease seen in March. Output was forecast to fall 1.2 year-on-year.
In the EU27, industrial production rose 0.3 percent from March, while it dipped 0.8 percent from the corresponding month of 2012.
Among member states, production at French factories returned to growth in April, up 2.3 percent, following March's 0.6 percent fall, adding significantly to the overall activity. In Germany, production growth eased to 1.2 percent from 1.8 percent, while Italy logged a further decline, though at a slower rate than in the previous month.
The biggest monthly increases were registered in Ireland, France and Romania, while Finland, the Netherlands and Portugal recorded the largest decreases.
In a sign that industrial activity in the 17-nation bloc is emerging from recession, survey data released by Markit Economics this month showed that the manufacturing sector contracted at the slowest pace in 15 months in May. According to the purchasing managers' survey, all sub-indexes improved from the preliminary estimates.
The European Central Bank this month left its key interest rate unchanged at 0.5 percent as policy makers took a wait-and-watch stance after last month's quarter-point reduction, which was the first rate-cut in nine months.
In March, the ECB lowered its growth forecast for 2013 to 0.5 percent and the projection for 2014 to 1 percent. The central bank sees gradual economic recovery later this year.
For comments and feedback contact: editorial@rttnews.com
Economic News
What parts of the world are seeing the best (and worst) economic performances lately? Click here to check out our Econ Scorecard and find out! See up-to-the-moment rankings for the best and worst performers in GDP, unemployment rate, inflation and much more.
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.