Eurozone industrial production rebounds in January

(Sharecast News) - Eurozone industrial production surprised on the upside in January, official data showed on Thursday, supported by expansion in Germany, the bloc's biggest economy. According to Eurostat, the statistical office of the European Union, industrial production rose by 0.8%, and by 0.3% in the EU.

The 0.8% rise was a turnaround on December's 0.4% slide, and an improvement on the 0.6% rise forecast. It was also the highest production level since August.

Year-on-year, industrial production was flat in the Eurozone - ahead of forecasts for a 0.9% decline - and decreased by 0.2% across the entire EU.

Among member states, Germany reversed December's 2.1% decline with a 2.3% improvement in January. That helped offset weaker performance elsewhere, including a 1% decline in Spain and a 0.6% dip in France.

Data for Italy were not available.

Among sectors, the strongest performer was intermediate goods, up 1.6%, which helped partially offset a 3.1% decline in non-durable consumer goods.

Bert Colijn, chief economist, Netherlands, at ING, said: "While volatile, the January industrial production data does suggest that industrial activity may be stabilising after a long decline that started in 2023.

"The outlook for industrial production is shifting but the question is when real relief is going to come. In recent weeks, more pan-European defence spending and German infrastructure investment have become more likely. At the same time, these investments typically require time before their impact is reflected in the numbers.

"Overall, the light at the end of the tunnel has become stronger, but the question of when the end will be reached remains as unclear as ever."