Eurozone industry robust

(MENAFN- Khaleej Times) Industrial output in the 17-nation eurozone bounced back sharply in June, another pointer that the single currency bloc is finally edging out of recession, official data showed on Tuesday. With overall growth figures for the second quarter due today expected to show a switch out of recession, eurozone industrial production in June output jumped 0.7 per cent from May when it fell 0.2 per cent. Compared with June 2012, the eurozone gained 0.3 per cent, the Eurostat statistics agency said. The figures are the latest to suggest the eurozone is turning the corner, with retail sales, business and consumer confidence and now industrial output all encouraging after months in the doldrums. Ben May of Capital Economics said the industrial output figures "provide further signs that the eurozone has emerged from recession." Second-quarter overall eurozone growth should therefore come in at 0.2 per cent, reversing the 0.2 per cent contraction in the first quarter, May said. For Howard Archer of IHS Global Insight, the industrial output figures confirmed his forecast of a return to eurozone growth in the second quarter. However, like many analysts Archer remained cautious about the outlook. "While encouraging, it should be noted that June's marked rise... was substantially due to" Germany's gain of 2.5 per cent, he said. At the same time, Archer warned of continued headwinds that will keep the economy under pressure.