Strongest Increase in Industrial Production in the Eurozone Since August, 2001

Industrial Production excluding construction (2000=100) in the Euro zone has fluctuated in a narrow range of roughly 98-101 since September 11, 2001. Production rose just over one-half of one percent in 2001 and declined over one-half of one percent last year. So far this year, production is only modestly above the comparable period of 2002. However, the rise in October, 1.11% from September to reach 100.83, was the strongest since August, 2001.

The capital goods sector showed the best improvement, rising 2.44%, followed by increases of 1.0%, or better, in the energy and intermediate sectors. Throughout the post September 11, period, production of capital goods has been relatively well maintained. Production of durable consumer goods has been the weakest sector and it continues to show only moderate improvement. Production of consumer durables increased 0.67% in October and that of consumer nondurables, 0.33%. Production of both durable and nondurable consumer goods is below October, 2002.

Recent surveys of business and consumer confidence point to continued, if modest, increases in production. Consumer confidence, however, remains less robust than that of business.