Industrial production in the euro area increased by 0.8 percent m/m in April after an increase of 0.4 percent in March. On average, it was forecast to increase by 0.3 percent. On an annual basis, the production increased by as much as 39.3 percent, but this was an increase calculated from a low base, i.e. from the covid lockdown period.
The highest increase was recorded in Italy (79.5 percent y/y), and the lowest in Denmark (3.1 percent y/y). In Poland, which is not part of the euro area, in April, according to Eurostat, industrial production increased by 45.2 percent y/y, but counting by monthly basis it fell by 0.7 percent.
“This is an encouraging sign of the economic recovery that has accompanied the increase in vaccination rates and the easing of restrictions. We expect the euro zone's GDP to grow by 4.3 percent in 2021,” Josie Dent, an economist at the CEBR think-tank, said.
Analysts, however, point out that in the coming months, the recovery in European industry may be hampered by disruptions in supply chains, such as shortages in the microprocessor market.