Industrial production in the 17 countries that share the euro increase in the second month of the year on strong growth in leading economies that offset sharp drops around the debt-burdened periphery of the region, according to The Wall Street Journal. On Wednesday, the European Union reported that industrial output in the eurozone added 0.4% in February to reach a 7.3% annual gain. The increase represented an acceleration in growth from the 0.2% monthly and 6.3% annual gains posted in the prior month.
Martin van Vliet of ING said the data indicates that “The industrial sector is still bound to make a clear positive contribution” to economic growth in the first quarter.” However, the report showed diverging fortunes in the region as Germany and Italy each posted a 1.4% monthly increase, while industrial production in Ireland and Greece dropped in February by 2.5% and 1%, respectively. In addition to the divergence between the region’s leading economies and debt-burdened countries, rising oil prices, a stronger euro, fiscal tightening, and additional austerity measures are threatening the area’s growth in the coming months.
