Output in France and Italy see sharp falls

| May 11, 2009 | 0 Comments

Industrial production in France and Italy have experienced sharp falls in March.

National statistics office INSEE said output in France fell 1.4% in March compared with the previous month, nearly treble the 0.5% which had been expected by economists.

In the meantime, Italian national statistics agency ISTAT said monthly production in the country fell for the 11th consecutive month, down 4.6% in March, compared with the previous month.

A fall of 1.6% had been expected by economists.

According to ISTAT, the heaviest falls came in the production of electrical and domestic equipment, which dropped 10.6%.

Today’s figures will dash hopes of a recovery in the euro region after recent reports were showing some positive signs for the region.

Business confidence and manufacturing orders were on the up in Germany, suggesting the slump may be easing but today‘s figures suggest otherwise.

Last week, the European Central Bank (ECB) cut interest rates for the euro zone to a record low 1%.

The ECB announced plans to inject around €60 billion (£53.5 billion) into the economy by buying up debt, in a bid to boost the economies.

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