Eurozone Industrial Production Rises Marginally In April

(RTTNews) - Eurozone industrial production grew only marginally in April as energy and consumer goods output remained weak, signaling that economic recovery is set to slow in the second quarter.

Industrial production edged up 0.1 percent month-on-month, rebounding from a 0.4 percent fall in March, figures from the Eurostat showed Friday. Economists had expected 0.4 percent growth.

Weak growth in industrial production suggested that the boost to industry from the lower oil price and euro at the start of the year may already be fizzling out, Jessica Hinds, a European economist at Capital Economics said.

Looking ahead, the economist said, industry's weak start to the second quarter indicates that it is unlikely to fare as well as it did in the first quarter.

However, IHS Global Insight Economist Howard Archer said the prospects still look pretty solid for Eurozone manufacturers and it would be able to make a respectable contribution to GDP growth.

On a yearly basis, industrial production expanded at its slowest pace in three months in April. Industrial output gained 0.8 percent following 2.1 percent growth in March, which was revised up from 1.8 percent.

Economists had forecast 1.1 percent increase. The latest growth was the smallest since January's 0.6 percent gain.

Among sub-components of industrial production, intermediate goods output gained 0.3 percent on month after staying flat in March.

Production of capital goods and durable consumer goods recovered, up 0.7 percent and 1 percent, respectively. Meanwhile, non-durable consumer goods output fell 0.8 percent and energy output was down 1.6 percent.