Euro zone industry output declines, showing fading overall growth

BRUSSELS (Reuters) - Euro zone industrial production fell for a second straight month in March, depressed by every sector except energy, the European Union statistics office said on Thursday.

The figures imply that the bloc's overall economic growth, which hit a five-year high of 0.6 percent in the first quarter, tailed off after a very strong opening month.

Industrial production in the 19-member single currency bloc was 0.8 percent lower in March than in February, against the average forecast in a Reuters poll of economists of no change.

Year-on-year, euro zone industrial production rose by 0.2 percent, below the average market expectation of a 1.1 percent increase.

Eurostat also revised down the monthly output figure for February to -1.2 from -0.8 percent, although the year-on-year number went up to a gain of 1.0 from 0.8 percent.

Euro zone March monthly output decreased mostly because of a sharp fall of production of non-durable goods. Production of durable consumer goods, such as fridges, decreased by 0.4 percent and of capital goods, such a machinery, declined by 1.1 percent.

Output of intermediate goods was 0.8 percent lower.

Energy was the only sector with higher production, rising 2.0 percent.

The two largest economies of the euro zone saw a drop in their monthly output, in Germany by 1.0 percent, France 0.3 percent. Italian industrial production was unchanged.

(Reporting By Philip Blenkinsop; editing by Robert-Jan Bartunek)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• AI finance startup Flex doubles valuation to about $1.2 billion, source says
• Russia says there can't be security guarantees for Ukraine without its involvement
• KPMG Australia to cut hundreds of jobs and reduce partner pay, AFR reports