Eurozone industrial output rose 0.1% MoM in April as firms rushed to fill orders
amid fears of price rises and supply disruptions from the Middle East conflict,
Eurostat said; March was revised up to +0.4% MoM. Energy shocks are expected to
weaken future output: in May input prices rose at the fastest pace in 3½ years
and S&P Global’s eurozone manufacturing PMI cooled from 52.2 in April to 51.6.
The industrial hit is likely to drag on Q2 growth; the economy showed
recessionary signs after Q1 GDP contracted 0.2% QoQ following a 0.2% expansion
in the prior quarter. News of a US‑Iran temporary deal to reopen the Strait of
Hormuz could ease pressures on energy‑intensive sectors. Deutsche Bank chief
economist Joerg Kraemer said a rebound is premature and expects alternating good
and bad news over the next two months; Deutsche Bank still forecasts 0.6% growth
for the eurozone this year.
