The euro and European equities gained today, helped by better than expected data on euro zone industrial production.
According to the European Union’s Statistics Office, August production rose 1.2 percent versus a 0.7 percent decline that was projected. July recorded a revised 1.1 percent increase.
On a year-on-year basis, the region had a 5.3 percent increase from August 2010, also beating estimates of 2.2 percent, and well above previous 4.4 rise.
The positive numbers give an indication that third quarter growth might be lower than expected.
Due to the impact of the debt crisis, it is feared that the euro zone’s growth has slowed in the third quarter compared to the 0.2 percent second quarter growth. Economists predict a 0.1 percent slowdown.
A breakdown of today’s data shows that the increase in industrial production was led by an increase in the production of capital goods, used for investment, which rose by 12.2 percent. Also as a result of improved consumer confidence, the output of durable consumer goods jumped 2.8 percent in annual terms.
This was good news as Europe struggles to get out of a debt crisis that has stalled growth in the region.