Eurozone industrial production unexpectedly falls in March

Eurozone industrial production unexpectedly fell in March, data revealed on Monday.

Eurostat said euro-area industrial output dropped 0.8% in March compared to a month ago, worse than forecasts for zero growth.

The drop was attributed to falls in output of non-durable and durable consumer goods, capital goods and intermediate goods, which offset an increase in the production of energy.

The decline followed falls in industrial output across Germany, France, Italy and the Netherlands.

However, on a year-on-year comparison, industrial output in the euro-area rose 0.2% in March, driven by a rise in the production of capital goods.

Dennis de Jong, managing director at UFX.com, said: “The euro had already softened after poor results from the region’s big three economies and could now be in for a tough end to the week. However, there is optimism surrounding the Greek bailout following Monday’s discussions.”

The euro fell 0.14% against the dollar at 1.1410 at 1101 BST.

De Jong added that European Central Bank President Mario Draghi may now be concerned that the expansion enjoyed at the start of the year in the Eurozone may grind to a halt in the second quarter.

“First quarter results for the region are out at the end of the week and they will give us a better idea of how Europe shapes up going into the second quarter.”