Eurozone Industrial Output Up Modest 0.3 Percent

PAN PYLAS

LONDON (AP) — Industrial production in the 16 countries that use the euro increased a modest 0.3 percent in September from the month before, reinforcing expectations that growth figures on Friday will show the recession in the single currency over.

The increase reported Thursday by the EU's statistical office Eurostat was slightly below market expectations for a 0.5 percent increase but means that industrial production over the July to September rose by 2.2 percent.

Though September's increase was way down on the 1.2 percent recorded in August, partly because of the end of some of the car scrappage programs across the region, it was the fifth straight monthly rise. That helped trim the annual rate of decline to 12.9 percent from 15.1 percent.

Industrial production is important for the eurozone as much of its future growth will hinge on exporting high value items like cars, particularly from Germany.

The September industrial figures will be incorporated into growth data out Friday. These are expected to show that the eurozone as a whole is officially out of recession.