Euro-Zone Industrial Output Rises Slightly; Production Decline in Southern Countries Underlines Weakness of Recovery
Industrial production across the 18 countries that share the euro rose slightly in February, although output in many of the currency area's troubled southern members declined.</br></br>The modest nature of the industrial expansion, together with its narrow spread, underline the weakness of the euro zone's recovery as policy makers at the European Central Bankconsider new measures to counter a period of very low inflation.</br></br>The European Union's statistics agency Monday said output rose by 0.2% from January, and by 1.7% from February 2013. The rise in output met expectations. Eurostat also revised its calculations for January, and now estimates production was unchanged during the month, having previously recorded a decline of 0.2%.</br></br>The rise in output may reassure members of the European Central Bank's governing council that the modest growth they expect to see this year is materializing. But there were signs of continued weak consumer demand, an indication that inflationary pressures are likely to remain weak.</br></br>Production of durable consumer goods fell by 1.2% from January, and was down 0.6% from February 2013. Durable goods such as washing machines and other items of household equipment are the type of nonrecurring purchases that consumers postpone if they expect to see price falls.