For the second month in a row, despite Central Bank and ECB projections, industrial and economic growth has occurred in the Euro-Zone. Across the board countries like Germany, France, Italy, and Greece showed growth ranging from 1-2.5 percent. Euro-area output of capital goods rose 0.7 percent in August from the previous month, when it increased 2 percent, today’s report showed. Production of durable consumer goods gained 3.9 percent, while output of intermediate goods was unchanged in the month. Energy production rose 0.9 percent. Citigroup and World Bank have both made comments on this growth and skeptical about what it means. Even though the growth shows Europe is going in a positive direction, large industrial firms in Germany have issued hiring freezes to mitigate previous quarter loses.
All countries and businesses agree that things in the Euro-Zone are still "tense." Even though this year's current projections put it behind in global economic growth since the recession, debates about this being a general slow down or turbulence on the path to recovery are flying across Europe. Additional growth in the strength of the Euro has incited Ben Bernanke to extend current stimulus plans.
German hiring freezes will most likely limit the Third Quarter growth and could potentially lead to a production loss in the subsequent year. The freeze also contributes to the Euro-Zone unemployment rate standing at 11.4 percent. Germany has also increased austerity laws within the country to monitor finances more strictly, possibly as a precaution to the potential slowing of global economic growth.
http://www.bloomberg.com/news/2012-10-12/euro-region-industrial-output-unexpectedly-increased-in-august.html
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