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Euro zone business climate rebounds, but still weak

Published 04/29/2009, 05:00 AM
Updated 04/29/2009, 05:16 AM

BRUSSELS, April 29 (Reuters) - The 16-country euro zone's business climate index rebounded in April from last month's all time low, but remained in negative territory and pointed to weak industrial production, data showed on Wednesday.

The Business Climate Indicator (BCI) increased to -3.33 points from an upwardly revised -3.49 in March, its first improvement since May 2008. Analysts polled by Reuters had expected the indicator to be at -3.50.

"The indicator ... remained at a very low level, pointing to another negative outcome for year-on-year production growth," the European Commission said in a statement.

"Given the current levels, it also suggests that annual industrial production growth will remain clearly subdued in April," it added.

The rise reflected an improving situation in most of its underlying components. Managers' production expectations picked up clearly in April, while the production trend observed in recent months improved only slightly.

Their assessment of current overall order books and stocks of finished goods recovered marginally from last month's level, though export order books continued to worsen. (Writing by Marcin Grajewski; editing by Mark John)

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