Eurozone Dec. Industrial Order Growth Exceeds Forecast
Thursday, 23 February 2012 | 11:00
Eurozone's industrial orders increased more than economists expected in December, after falling in the previous month, helped mainly by a sharp rise in new orders of capital goods.
Compared to November, industrial orders increased a seasonally adjusted 1.9 percent in December, faster than the 0.5 percent growth economists forecast, data from statistical office Eurostat showed Wednesday. In November, new orders decreased 1.1 percent month-on-month.
The latest growth was driven mainly by a 4.2 percent monthly increase in new orders of capital goods. There was a 1.5 percent rise in orders of intermediate goods, and a 0.1 percent growth in orders of non-durable consumer goods during the month.
In the European Union (EU), industrial new orders grew 1.3 percent sequentially in December, recovering from the previous month's 1.2 percent decrease.
On an annual basis, new orders decreased a working-day adjusted 1.7 percent in December, slower than November's 2.5 percent fall. The rate of fall was also slower than the 2.8 percent decrease economists expected. There was a 1.7 percent annual decrease in new orders in the EU during the month.
Separately, data released by Markit Economics today showed that Eurozone's private sector activity unexpectedly slipped back to contraction in February, fueling concerns that the economy may be sliding into a recession amid the region's prolonged debt crisis. The composite output index fell to 49.7 in February from 50.4 in January.
In the fourth quarter, the Eurozone economy shrank for the first time since 2009 as escalating debt crisis and austerity measures dampened economic activity. Gross domestic product fell 0.3 percent sequentially in the fourth quarter, after expanding by 0.1 percent in the third quarter and 0.2 percent in the second quarter.
Source: RTT News
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