Industrial output in Europe’s euro currency bloc is slumping, new evidence the region’s economic recovery could be stalling.
The European Union reports industrial output unexpectedly dropped 1.1 percent in October, after falling slightly in September. Industrial strength fell in October in the eurozone’s two biggest economies, Germany and France, and gained ground in only two of the bloc’s 17 nations, Italy and Estonia.
The eurozone has struggled to regain its economic footing after escaping an 18-month-long recession earlier this year.
Its economy, collectively the world’s largest, advanced three-tenths of a percent in the April-to-June period, but just a tenth of a percentage point for the three months ending in September.
The Standard & Poor’s financial services firm predicted that for all of 2013, the eurozone economy would contract six-tenths of a percent, but advance by nearly one percent next year.
In another report, European officials said that one of the euro zone’s smallest countries, Slovenia, would have to spend $6.6 billion to rescue its banks, but would be able to afford the infusion of cash without seeking an international bailout.
(Photo: Michael and Christa Richert/sxc.hu)