Euro industry slump

European industrial production in March was down
2 per cent compared with a month earlier, according to the latest figures released by Eurostat.


European industrial production in March was down 2 per cent compared with a month earlier, according to the latest figures released by Eurostat.



Among the countries with data available, industrial production fell in five and rose in fourteen.


The highest increases came from Portugal, Finland, Luxembourg, Italy, Lithuania and Spain.



The survey revealed that production of capital goods was down by 0.5 per cent, non-durable consumer goods fell by 1 per cent and energy declined by 2.8 per cent.


These figures bring the annual decline to 20.2 per cent, the steepest drop since records began.



Commenting on the data, Stephen Radley, EEF’s chief economist, said: ‘It is too early to say that the downturn in manufacturing is over.


‘While the overall figures show output declining more slowly, the rate of contraction is still severe in some industries and trade volumes are still weak.


‘The Bank was right to expand its quantitative easing programme last week, and the focus must remain on fighting the recession.’