UPDATE 1-Euro zone output rebounds in Nov, adds to signs of economic recovery

Tue Jan 14, 2014 7:12am EST

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* Industrial output strongest since May 2010
    * Improvement seen in all sectors
    * Germany's production highest since July 2011

 (Adds details, analysts comments)
    By Martin Santa
    BRUSSELS, Jan 14 (Reuters) - Euro zone industrial production
rose in November at its fastest pace in nearly four years, in an
encouraging signal that the bloc's economic recovery
strengthened in the final quarter of 2013.
    Industrial production across the euro zone jumped by a
faster-than-expected 1.8 percent on the month, the biggest
increase since May 2010 and rebounding after an upwardly revised
0.8 percent drop in October, the EU's statistics office Eurostat
said on Tuesday.
    "Today's industrial production figures make for encouraging
reading and will fuel hopes of a sustained recovery in 2014," 
said ING bank economist Martin van Vliet.
    "However, with production still more than 10 percent below
its pre-crisis peak there is still a long way to go before full
recovery is achieved." 
    The monthly rise was fuelled by a 3.0 jump in the output of
capital goods and a 2.2 percent rise in the production of
durable consumer goods, such as electronics and cars.
    Economists in a Reuters poll had expected production to
increase 1.4 percent on the month, against a previously reported
1.1 percent decline in October.
    Compared with the same period of last year, industrial
production rose 3.0 percent in November after an upwardly
revised 0.5 percent rise in October.
    The data points to a slight acceleration of the economic
recovery of the 9.5 trillion euro economy in the final quarter
of 2013 compared with the previous three months, when it nearly
stalled because of a weak performance by France and Italy.
    Production in the bloc's largest economy, Germany, grew 2.4
percent on the month in November, its strongest growth since
July 2011, while output in France, the euro zone's
second-largest economy, rose 1.4 percent.
    That added to signs that the French economy rebounded in the
final quarter of last year although weaknesses remain and
President Francois Hollande is due to unveil a new reform agenda
on Tuesday to give fresh impetus to the economy.
    Ireland, which successfully exited an international bailout
late last year, saw production surge 11.7 percent on the month,
marking the strongest growth since January 2006.
    The southern periphery, where the crisis erased tens of
thousands of jobs, saw some improvement as Spain's output
returned to growth and Portugal's production was up by 1.5
percent.
    Analysts said that recent data showed an acceleration of
economic activity, which could also be seen in a stabilising
labour market, where unemployment has been stuck at record high
since spring 2013, but was not getting any worse.
    "The growth improvement in place since spring 2013 is
starting to spill over to the labor market, which is finally
stabilizing and may soon show the first signs of moderate
employment recovery," said Marco Valli, Unicrecit's chief euro
zone economist.    
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    For TABLE :                
    For Graphics:         link.reuters.com/mep44s
    For Eurostat data:
here
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 (Editing by Susan Fenton)
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