February: +0.9% m/m, +4.1% y/y

MNI survey median: +0.1% m/m, +2.6% y/y
MNI survey range: -0.5% to +0.7% m/m

January: +1.6% m/m (revised from +1.7%)
December: +0.8% m/m (revised from +0.6%)
November: +1.3% m/m (revised from +1.2%)
October: +0.3% m/m (unrevised)
September: +0.7% m/m (unrevised)
—

FRANKFURT (MNI) – Industrial production growth in the Eurozone
slowed less than expected in February, as falling consumer goods and
energy production were more than offset by stronger intermediate goods
and a rebound in capital goods output, Eurostat reported on Wednesday.

After a marginally downwardly revised increase in January,
February’s 0.9% monthly rise left the annual change at +4.1%, its
highest since April 2008. Compared to the fourth quarter of 2009, output
in January and February was 3.0% higher on average.

Among the main components, intermediate goods registered the
strongest jump, rising 1.5% on the month, building on its January
rebound and leaving output 7.2% higher compared to February 2009, its
strongest annual gain since December 2006. Often viewed as an early
indicator for cyclical changes, accelerating intermediate goods
production suggests good news for output in the near future.

Capital goods output also registered an improvement, rebounding
0.9% in February and partially undoing January’s slide. On the year,
capital goods production was 3.2% higher.

Conversely, durable consumer goods were unable to maintain their
recovery and dipped 0.6% in February month-over-month, resulting in an
annual change of -0.1%. Non-durable consumer goods production also lost
ground on the month, falling back 0.2%, though leaving output 1.5%
higher than in February 2009.

Energy production fell 0.4% since January, interrupting two
consecutive months of growth. However, output levels were still 2.6%
higher than one year ago.

Manufacturers cited in the latest purchasing managers index (PMI)
report highlighted further output increases in March, with the rate of
expansion at its highest level since June 2006.

The PMI polls also noted new orders rising at their fastest pace
since June 2000, suggesting further production gains in the near term.

In line with the PMI findings, manufacturers surveyed by the
European Commission revised their expectations upwards yet again. Yet,
while the order book assessment improved as well, firms remained
pessimistic, with the majority seeing demand trending below normal.

Joint projections from the French national statistics office and
the leading institutes in Germany and Italy project industrial
production growth of 0.8% in both the second and third quarters,
following a rebound of 2.2% in the first quarter.

–Frankfurt bureau tel.: +49-69-720142. Email: frankfurt@marketnews.com

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