Eurozone Industrial Output Surges 2.6% in March Led by Capital, Durable Goods

Eurozone industrial production surged 2.6% month-on-month in March 2025, significantly exceeding expectations and marking a hopeful end to a prolonged two-year downturn. This growth was driven by strong increases in capital goods (+3.2%), durable consumer goods (+3.1%), and non-durable consumer goods (+2.3%), while energy production declined by 0.5%, likely due to lower energy prices. Year-on-year, industrial output rose 3.6%, outperforming forecasts, with notable country-level variations including a 14.6% surge in Ireland, influenced by multinational corporations, and declines in Luxembourg, Denmark, Greece, and Portugal. Germany, the eurozone's industrial leader, saw a 3.1% monthly increase, while other large economies such as Spain, Italy, and France experienced more modest gains. Despite the positive data, concerns remain about the sustainability of recovery amid challenges like high energy costs, competition from China, and the impact of the global trade war. Overall, the data suggests a solid rebound in eurozone industry but underscores ongoing economic uncertainties.