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REFILE-Euro states' output data suggests strong Feb for bloc

Published 04/11/2011, 06:10 AM
BNPP
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(Refiles to clarify headline)

* Italy production up better than forecast 1.4 percent

* France as expected at 0.4 percent

* Germany reported way above forecasts last week

ROME, April 11 (Reuters) - Strong industrial production data from the euro zone's top three economies pointed to a healthy rise in output in the region in February and strengthening economic growth in the first quarter.

Output in Italy rose a stronger than expected 1.4 percent, data showed on Monday, after a steep drop the month before, while France's 0.4 percent gain matched forecasts.

"It's pretty much in line with what we were expecting and points to a strong first quarter, something we're seeing in other countries like Germany for instance," said Marie Diron of Oxford Economics after the French data.

Last week Germany, the economic powerhouse of the 17 nation euro zone, reported a 1.6 percent output rise for February, way above expectations of 0.5 percent and following a 2.0 percent gain in January.

The data from the three countries that make up around two thirds of the euro zone economy suggest Wednesday's aggregate reading for the bloc could be stronger than expected.

A Reuters survey of analyst conducted last week pointed to a 0.7 percent monthly rise, after a 0.3 percent increase in January.

Luigi Speranza of BNP Paribas said Italy, the euro zone's third largest economy was still lagging most of its neighbours despite the rebound in output in February.

"With a 0.5 percent monthly rise in March we will be looking at a flat quarter in terms of industrial output, which is quite disappointing considering the global context of expanding activity," he said.

He forecast euro zone economic growth would strengthen to 0.6 percent in the first quarter after the 0.3 percent rate at the end of last year.

Germany will lead the way with growth of 1.0 percent, and Italy will grow by just 0.2 or 0.3 percent, he forecast.

(Editing by John Stonestreet)

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