- IHS Economics
Manufacturing industry in the Euro zone rebounded slightly by 0.1% in April on the monthly basis, following a sharp drop of 0.3% in March. However, an increase was much slower than economists have anticipated, as they waited for a 0.4% gain. Output from manufacturers, mines and utilities diverged from country to country; however, the largest contribution was made by two engines of the block's economy, namely Germany and France. Positive data from the European biggest economy was offset by a slump in the Fifth Republic, thus providing the pan-European indicator with just a marginal gain in April. Despite that, the majority of experts suggest that the 19-nation economy is going expand rapidly in 2015, after years of stagnation or even recession. The latest report from the World Bank forecasts the Euro area's GDP to jump 1.5% this year and 1.7% in 2016-17, with economy progressing faster than previously estimated.
In the meantime, wholesale prices in Germany, the region's powerhouse, were positive for the fourth month in a row. They advanced by 0.5% last month, up from a 0.4% growth seen in the preceding month and stronger than predicted at 0.3%. The wholesale price index is an indicator of future inflation, and the published data may result in further strengthening of price trends in both Germany and the Euro zone later in the year.
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