EU ECONOMIC OUTLOOK

Economic growth

The European Union says that economic growth in the 17-nation euro currency bloc stalled in the early months this year. Earlier projections in recent weeks signaled that the eurozone had fallen into a recession in the January-to-March period this year, after contracting three-tenths of a percent in the last three months of 2011.

But the region's economic powerhouse, Germany, unexpectedly advanced by half a percentage point in the first quarter, enough to lift the rest of the currency union's economy to a stagnant level.

But the economic performance was much less robust elsewhere in the eurozone. The region's second biggest economy, in France, was flat. Italy, with the third biggest, fell eight-tenths of a percent, while No. 4 Spain dropped three-tenths.

Greece, facing massive debts and now a new election after being unable to form a coalition government, is in its fifth year of a recession. Its quarterly performance was not available.

(http://www.voanews.com/content/eurozone_economic_growth_stalled_in_early_2012/666553.html)



UNEMPLOYMENT

Eurostat estimates that 24.772 million men and women in the EU-27, of whom 17.365 million were in the euro area (EA-17), were unemployed in March 2012. Compared with February 2012, the number of persons unemployed increased by 193 000 in the EU-27 and by 169 000 in the euro area. Compared with March 2011, unemployment increased by 2.123 000 in the EU-27 and by 1.732 000 in the euro area.

(http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Unemployment_statistics)

Industrial production

Annual comparison

In March 2012 compared with March 2011, production of energy dropped by 7.3% in the euro area and by 6.3% in the EU 27. Durable consumer goods fell by 6.7% and 5.5% respectively. Non-durable consumer goods decreased by 3.8% in the euro area and by 2.4% in the EU27. Intermediate goods declined by 3.0% and 2.3% respectively. Capital goods grew by 2.3% in the euro area and by 2.0% in the EU27.

Among the Member States for which data are available, industrial production fell in fifteen and rose in eight. The largest decreases were registered in Luxembourg (-11.3%), Greece (-8.5%), Spain (-7.5%), Estonia and Finland (both -6.1%) and Italy (-5.8%), and the highest increases in Slovakia (+12.1%), Latvia (+8.5%) and Lithuania (+5.9%).

http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/4-14052012-AP/EN/4-14052012-AP-EN.PDF

TRADE

The first estimate for the March 2012 extra-EU27 trade balance was a 6.7 bn euro deficit, compared with -11.8 bn in March 2011.

In February 2012 the balance was -12.0 bn, compared with -10.6 bn in February 2011. In March 2012 compared with February 2012, seasonally adjusted exports fell by 0.2% and imports by 0.9%.

http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/6-16052012-AP/EN/6-16052012-AP-EN.PDF

Industrial output

The European Union's statistics office said eurozone output fell 0.3pc in March compared to February. It dropped 2.2pc year-on-year - the steepest fall since December 2009.

The figures took analysts by surprise, they were expecting a 0.4pc rise for the month to March a just 1.2pc fall on the year. The main cause for the drop was a 8.5pc fall in energy production.

In the Netherlands, industrial production fell 9pc in March, compared to an 11pc rise in February. It fell 1.8pc in Spain in March, and 0.9pc in France. In Germany, the output grew by 1.3pc over the same period.

Economists are expecting tomorrow's GDP figures to show a decline of around 0.2pc which is likely to add to concerns about the impact of the tough austerity measures on business activity, growth and confidence.

Spain has recently released a raft of economic data that point strongly to a return to recession. Italy is expected to confirm another quarter of GDP decline today - its third quarter in a row.

http://www.telegraph.co.uk/finance/economics/9265935/Eurozone-industrial-production-falls-boosting-recession-fears.html

Data Suggest a Deepening Slump

By ILONA BILLINGTON

LONDON — Industrial production in the 17 countries that use the euro fell unexpectedly in March, leaving little doubt the region contracted for a second straight quarter in the first three months of the year and returned to recession, data by Eurostat showed Monday.

 

The European Union's statistical agency will publish the first estimate of first-quarter gross domestic product Tuesday. Economists are forecasting a 0.2% quarterly decline, according to a Dow Jones Newswires poll.

Industrial production fell 0.3% on the month in March and by 2.2% on the year. The latter was the steepest drop since a 3.7% decline in December 2009, while the monthly decline was because of a sharp 8.5% decrease in energy production as the weather in March was warmer than usual for the time of year, a Eurostat statistician said.

"March's fall in euro zone industrial production is a timely reminder that first-quarter GDP, due out tomorrow, will likely show a contraction," said Martin van Vliet, euro zone economist for ING Bank. Mr. van Vliet adds that the sector likely knocked less than 0.1 of a percentage point off gross domestic product in the first quarter.

The data were weaker than expected. Economists had forecast a 0.5% monthly increase and a 1.2% year-on-year fall, according to a Dow Jones Newswires survey last week.

Eurostat also revised its estimate for February to show monthly production rose 0.8%, and fell 1.5% on the year.

Eurostat originally estimated that industrial production rose 0.5% on the month and was 1.8% lower on the year in February.

The region is continuing to struggle as an array of austerity budgets weigh on growth and confidence. Several member economies—including Spain—have already published data confirming a return to recession, while the Italian economy is widely expected to have shrank for a third straight quarter when first-quarter data are also published Tuesday.

And other, more timely survey data suggest the second quarter won't bring about a swift improvement across the beleaguered region.

A weak economic performance combined with current uncertainty on euro-zone unity over austerity means the outlook for the single-currency region is shaky at best.

The Greek election failed to result in a clear leader, and no consensus between the parties is close to being reached at the moment. And incoming French premier François Hollande has made clear that he would prefer more focus on growth rather than austerity.

Other details of the March data, meanwhile, show that by country, industrial production fell 1.8% on the month in March in Spain and by 0.9% over the same period in France, highlighting that weakness has spread across the larger economies.

German output, meanwhile, rose 1.3% on the month in March and grew 0.5% over the same period in Italy, the data show.

( portion of the article has been deleted to meet the requirement, if any body is interested to view complete article visit the link)

http://online.wsj.com/article/SB10001424052702304371504577403830184395576.html

Write to Ilona Billington at ilona.billington@dowjones.com