European industrial production increased more than economists forecast in April, led by demand for intermediate goods such as steel and car engines.
Output in the economy of the 16 nations using the euro rose 0.8 percent from March, the EU’s statistics office in Luxembourg said yesterday. Economists had projected a gain of 0.5 percent, the median of 33 estimates in a Bloomberg survey showed. From the year-earlier month, April production jumped 9.5 percent, the biggest gain since the data were first compiled in 1991.
Reviving exports are helping to fuel the eurozone economy’s expansion as consumers curb spending. Continental AG, Europe’s second-largest car-parts maker, on Thursday last week raised its full-year sales forecast. Still, European manufacturing growth slowed last month and European Central Bank President Jean-Claude Trichet said last week that the eurozone may expand at an “uneven pace” this year.
“There’s a growing divergence in terms of output within the euro region,” said Christoph Weil, a senior economist at Commerzbank AG in Frankfurt. “Still, manufacturing will remain one of the growth engines this year overall.”
The euro was little changed against the US dollar after the data, trading at US$1.2234 at 10:02am in London, up 1 percent on the day. The 16-nation currency has fallen 15 percent this year on concern that measures to tackle budget deficits may hamper economic growth in the region.
Meanwhile, production of intermediate goods rose 2.2 percent in April from March, when it gained 1.1 percent, today’s report showed. Output of capital goods such as factory machinery increased 1.1 percent in April, while energy production fell 0.9 percent in the month.
Emerging economies are leading a worldwide rebound. The Organisation for Economic Co-operation and Development said on May 26 that the global economy might grow 4.6 percent this year with China seen expanding more than 11 percent. In India, the economy may grow 8.3 percent this year and Brazil may expand 6.5 percent, the Paris-based group said.
Hanover, Germany-based Continental said last week that it expects full-year sales to rise more than 10 percent after business through last month was stronger than expected. Paris-based PSA Peugeot Citroen, Europe’s second-largest carmaker, said on June 2 that it aims to achieve stable sales in the region this year.
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