Industrial production in the eurozone increased more rapidly than expected in July, a fresh indication that the currency area’s modest economic recovery has maintained its momentum into the third quarter.
The European Union’s statistics agency Monday said output from factories, mines and power stations during July was 0.6% higher than in June, and 1.9% up compared with the same month a year earlier, the strongest performance since February. The median forecast of twenty-two economists surveyed by The Wall Street Journal last week was for a month-to-month rise of 0.3%.
Figures released last week showed the eurozone economy grew more rapidly than previously estimated in the three months to June, as a pickup in exports offset a slowdown in household consumption and a decline in investment spending.
But the European Central Bank has warned that slowing growth in China and a number of other large developing economies is likely to weaken demand for the eurozone’s exports, and slow the recovery. ECB President Mario Draghi stressed the central bank’s willingness to provide additional stimulus should its fears be realized.