Eurozone output rebounds in all sectors

Industrial production in the bloc of 17 countries sharing the euro jumped by 1.0 per cent on the month in August, after an upwardly revised 1.0 per cent drop in July, the EU’s statistics office Eurostat said yesterday.

Economists in a Reuters poll saw the bloc’s output up by 0.8 per cent on the month, from the previously reported 1.5 per cent decline.

Compared with the same period last year, industrial production fell by 2.1 per cent in August after a upwardly revised 1.9 per cent decline in July.

The 9.5 trillion euro economy is awakening from an 18-month-long economic downturn but the recovery is seen staying slender as countries suffer from record unemployment rates, weak market confidence and the impact of austerity on their economies.

Capital goods production surged by 2.4 per cent in August after a 1.8 drop the previous month, while production of durable goods, such as cars and electronics, was up by 0.8 per cent from a 1.8 fall the previous month.

Output in four out of the bloc’s five largest economies was up in August, with only the third biggest, Italy, down by 0.3 per cent.

Italian industrial output fell unexpectedly for the second month running in August, pouring cold water on hopes that the bloc’s third largest economy might emerge from its longest post-war recession in the third quarter.