Euro zone industrial output in April surged year-on-year more than in any month in almost two decades, data showed on Monday.
The European Union's statistics office Eurostat said industrial production in the 16 countries using the euro rose 0.8 percent month-on-month for a 9.5 percent year-on-year gain.
The annual jump is the highest since measurements for the eur zone began in January 1991, Eurostat said. For full data and tables see: http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/4-14062010-AP/EN/4-14062010-AP-EN.PDF
Economists polled by Reuters had expected a 0.5 percent monthly increase and a 8.7 percent annual rise.
"April's sharp rise in euro zone industrial output indicates that the recovery in the export-sensitive industrial sector has been little affected so far by the region's fiscal woes," said Martin van Vliet, economist at ING.
"The industrial sector appears to be on track to expand at a swift pace in Q2," he said.
Eurostat also revised upwards production data for March to a 1.5 percent monthly rise and a 7.7 percent year-on-year gain from 1.3 percent and 6.9 percent respectively.
The April gains were led by output of intermediate goods which jumped 2.2 percent on the month and 16 percent year-on-year. The 16 percent rise is also the highest since January 1991, Eurostat said.
"The manufacturing sector has been the leading light of the euro zone economy so far in 2010, benefiting from improved domestic and, especially, export demand as well as inventory rebuilding," said Howard Archer, economistat IHS Global Insight.
"In addition, the marked retreat in the euro from last November's peak of $1.51 to recently trade at a four-year low of $1.214 is not only helping exporters but is also making euro zone manufacturers more competitive in domestic markets," he said.
But production of consumer goods, both durable and non-durable, fell 0.1 percent and 1.2 percent respectively month-on-month.
"(This) highlights the fact that persistently soft consumer spending has held back euro zone recovery, indicating demand among consumers was still fragile," Archer said.
