Eurozone Industrial Production Grows at Highest Rate since 2009

Eurozone industrial output grew at its highest rate in more than six years during January 2016, driven by a sharp increase in output from Ireland.

Production rose by 2.1% across the 19-member euro area, reversing negative readings in December and November 2015.

It is the highest monthly rise since September 2009, when monthly output jumped 2.3%.

Ireland recorded the biggest increase in production, which rose 12.7% in January 2016 compared with December 2015.

Growth was also boosted by a sharp rise in capital goods, such as equipment and machinery, which are an indicator of future industrial investments.

However, while the rise was above expectations of a 1.7% month-on-month increase, analysts warned that growth might not be sustained at these levels.

In February, manufacturing activity was subdued within Germany and France, the eurozone’s biggest economies.

On an annual basis, industrial output rose by 2.8% compared with January 2015. It was the largest annual percentage increase since August 2011.