- Capital Economics
The Euro zone's industrial production increased at the fastest pace in more than six years in January, supported by a sharp rise in output in Germany and Ireland. While a surprising increase in German industrial output had hinted to strong start to the year across the currency bloc as a whole, the actual figure overshot economists' expectations. According to Eurostat, the Euro area's output surged 2.1% from December, the largest monthly gain since September 2009, and compared with analysts' forecast for a 1.6% rise. Moreover, the statistical agency revised December's decline from 1% to 0.5%. The January's advance was supported by Germany, where there was a 2.9% increase in production, while Ireland recorded a robust 12.7% rise in industrial production. Measured on an annual basis, the Euro zone's industrial output soared 2.8% in January, markedly up from the upwardly revised 0.1% decline in the prior month.
The Euro area's economy continued slowing in the fourth quarter of the past year, with a clouded outlook and a slowdown in emerging markets threatening the currency bloc. Joint economic output of the 19 countries increased a meager 0.3% in the December quarter, while for the whole 2015 the economy expanded 1.6%, compared with the 0.9% GDP growth recorded in 2014.
© Dukascopy Bank SA