Does Industrial Output Data Hint at a European Economic Recovery?
New data from Eurostat on industrial output in the eurozone suggests that the area is through the worst of the slump. Industrial output in the eurozone rose by 1 percent during the month of August, contrasting with the 1 percent decline that the region bore witness to in July. This suggests that July’s numbers may have been the result of seasonal trends or natural variance in the data rather than a downward trend, considering that industrial production has been on the upswing for most of this year.
However, levels remain below what they were this time of 2012, with the numbers from this August revealing a 2.1 percent decline from August of last year. This is mostly due to a sharp decline in industrial production during the third quarter of 2012, an occurrence that many economists do not believe will be repeated this year.
Some analysts have suggested that the budding economic recovery in Europe will carry momentum in industrial output through the rest of this year and into early 2014, at the very least.