Eurozone industry production confirms strong survey data

This week, industry production data for February for major Eurozone countries has been published. In alignment with the strong survey data (Industry PMI), industry production growth in Germany accelerated during the first two months of 1Q14 to 1.5%. On a sector basis, the automotive industry performed well, supported by disproportionate production growth. In France, industry production growth in 1Q14 has thus far managed to accelerate as well. Similarly to Germany, the automotive industry also had an above-average showing in France. The data for Italy shows stable industry production growth of 1.0% for 1Q14 so far. In total, the industry production data confirms the continuation of a broad-based recovery of the Eurozone economy.

Next week (April 14), industry production data for February for the Eurozone aggregate is going to be published. Based on the healthy development on the country level, one can expect a positive outcome for the Eurozone as well. On April 23, flash estimates of manufacturing PMIs for April will deliver further insights regarding the status of Eurozone industry. In March, manufacturing PMI values dropped slightly to 53.3, but nevertheless still (with a threshold level for growth of 50) point to continued or rather slightly accelerated production expansion of Eurozone industry in 1Q14.

In summary, the data confirms that the Eurozone economy is recovering on a broad basis and that the recovery is accelerating.