×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: Eurozone | Industrial | Output | Rises | Less | Than | Expected

Eurozone Industrial Output Rises Less Than Expected

Wednesday, 13 April 2011 12:42 PM EDT

Industrial production in the 17 euro countries rose for the fifth month running in February, official figures showed Wednesday, but the increase was half what markets expected, another sign that the economic recovery may be losing steam.

Eurostat, the EU's statistics office, said Wednesday that eurozone industrial output increased by 0.4 percent during the month, double the previous month's downwardly-revised rate but disappointing economists' predictions for a 0.8 percent gain.

Analysts said the figures provide further evidence that the industrial recovery may be losing momentum amid concerns over higher interest rates and the debt problems afflicting a number of euro countries. Last week, the European Central Bank raised its benchmark rate by a quarter of a percentage point to 1.25 percent, its first increase in nearly three years, because of concerns of rising inflation rates.

Ben May, European economist at Capital Economics, said the euro's recent strength, which has seen it push above $1.45 for the first time in 15 months, is likely to further weigh on the sector following last year's big pick up. A higher euro makes it more difficult for exporters to compete in the international marketplace.

"Given this, and the fact that tighter fiscal and monetary policy will increasingly bite as the year goes on, we still expect eurozone GDP growth to slow to a snail's pace in the second half of the year," May said.

The eurozone recovery has been heavily reliant on booming industry in Germany and February's figures provided further evidence that Europe's biggest economy is powering ahead, with industrial output there growing 1.4 percent on the month.

However, the picture is not so rosy in Europe's two bailed-out economies. Ireland saw its industrial output shrink by a massive 2.5 percent while Greece's declined by 1 percent.

Perhaps surprisingly, Portugal's industrial sector posted a solid 1.5 percent increase, even though the country spent much of the month trying to stave off a potential bailout. Despite all its firefighting measures, Portugal last week became the third euro country to request a bailout.

On a year-on-year basis, industrial output in the eurozone was up 7.3 percent in Febuary, 1 percentage point more than January's rate but below market expectations for an 8 percent increase.

© Copyright 2023 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Markets
Industrial production in the 17 euro countries rose for the fifth month running in February, official figures showed Wednesday, but the increase was half what markets expected, another sign that the economic recovery may be losing steam. Eurostat, the EU's statistics...
Eurozone,Industrial,Output,Rises,Less,Than,Expected
369
2011-42-13
Wednesday, 13 April 2011 12:42 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved