- Howard Archer, chief European economist at IHS Global Insight
Industrial output in the 17-nation economy increased more than expected in April, led by France, adding to signs the region's economy is beginning to emerge from a record-long recession, the European Union's statistics office said Wednesday. Factory production in the Eurozone rose 0.4% from March, when it gained a revised 0.9%. On a yearly basis, production, however, fell 0.6%. At the same time, industrial output in Europe's largest economy expanded 1.2%, French output rebounded with a 2.3% gain, while industrial production in such countries as Italy and Spain declined.
The Eurozone economy remains crippled by the impact of deepening sovereign debt crisis, as policy makers are continuing to stick to unpopular austerity measures, with millions of Europeans being out of work and small-and-medium-sized businesses struggling to receive credit. The latest estimates are saying the economy is likely to stagnate in the second quarter of 2013, before the economic output will return to growth. In the first three months of this year, gross domestic product fell 0.2%, posting a sixth consecutive quarter of contraction. Moreover, the ECB left interest rate unchanged during its last policy meeting, but mentioned another cut may be made in case of further deterioration of the economy.
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