Euro zone industrial production surprises

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Euro zone industrial production surprises

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More signs have emerged that the economic recovery is on course as industrial output in the euro zone soared in January; it recorded its biggest monthly increase on record .

In addition the figures for December were given a major revision by the European Union statistics office Eurostat.

Industrial production in the 16-countries using the single European currency jumped 1.7 percent from December.

Production rose 1.4 percent in annual terms, the first positive yearly figure since April 2008.

The data suggested that the euro zone’s economic recovery from the biggest crisis since World War Two may be less fragile than feared.

The upbeat figures could encourage the region’s governments to start winding down fiscal measures they took to boost growth.

The European Central Bank also closely observes such economic data to decide how quickly to withdraw the measures it introduced such as low interest rates and pumping money into the economy.

The European Commission forecast last month that the euro zone economy would expand by 0.7 percent this year after shrinking four percent last year.