2018.12.1208:57:00UTC+00Eurozone Industrial Production Rebounds Signaling Growth Pick Up

Eurozone's industrial production grew in October after a slump in the previous month, suggesting that economic growth may gain some steam towards the end of the year, yet remain sluggish.

Industrial production rose 0.2 percent from September, when it declined 0.6 percent, which was revised from 0.3 percent, figures from Eurostat showed on Wednesday. The growth was in line with economists' expectations.

In October, capital good production logged the biggest gain of 1 percent followed by durable consumer goods with 0.4 percent growth.

Intermediate goods output rose 0.2 percent, while the production of non-durable goods were flat. Energy output decreased 1.7 percent.

On a year-on-year basis, industrial production grew 1.2 percent in October, following a 0.8 percent rise in September, which was revised from 0.9 percent. Economists were looking for 0.8 percent growth.

"October's small rise in euro-zone industrial production provides some grounds for optimism that GDP growth will pick up a bit in Q4," Capital Economics economist Jack Allen said.

"But the big picture is that the euro-zone economy has lost momentum, increasing the chance that the ECB waits longer before raising rates than its current guidance implies."

Eurozone economic growth halved to 0.2 percent in the third quarter amid weaker spending, investment and exports.

Growth in the euro area private sector was the lowest in more than two years during November, the latest purchasing managers' survey showed.