Eurozone industrial production bounces back in April

Eurozone industrial production grew more than expected in April, according to the latest figures from Eurostat.

Industrial production was up 1.1% from March versus expectations of 0.8% growth. Durable consumer goods production rose by 2.3%, while the production of capital goods and non-durable consumer goods was up 1.9% and 1.6%, respectively.

Compared with April 2015, production grew by 2%, exceeding forecasts for a 1.3% increase.

Stephen Brown, European economist at Capital Economics, said: “April’s strong rise in euro-zone industrial production is unlikely to be the start of a strong upturn.

“Although the rise more than reversed March’s 0.7% drop, it still leaves output lower than it was in January.”

Brown added: “Despite April’s strong gain, the industrial sector is unlikely to match Q1’s strength in Q2. In fact, to replicate Q1’s 0.9% q/q rise in production, it would need to increase by a further 0.7% in both May and June. But the recent weakness of industrial surveys suggests that such strong gains are unlikely.”