According to Eurostat, industrial production in 20 eurozone countries grew significantly in March, exceeding forecasts. Reuters suggests this indicates the two-year recession in the sector is coming to an end.
Industrial output in the region jumped 2.6% in March, surpassing the expected 1.8% increase and February's 1.1% uptick. The figure increased 3.6% from a year earlier, higher than the 2.5% economists had forecast.
For years, European industry has been under pressure from high energy prices, competition from China, and weak domestic demand. These factors have weighed heavily on industry sales. As Reuters expects, global trade tensions, which began after the March data were collected, will likely affect more recent EU manufacturing figures.
Nevertheless, the agency noted that capital goods output rose 3.2% from the previous month. According to Reuters experts, this is an encouraging sign that investments are stable. Additionally, consumer durables production increased by 3.1%.