German Bank: Industrial production in the eurozone rebounds again in April

Industrial output in the eurozone rose again in April, as customers rushed to place orders to avoid price hikes and supply shortages caused by the Middle East conflict. Factories have ramped up production to meet the demand. The European Union's statistics office said on Monday that industrial output in April increased by 0.1% compared to the previous month, with the March growth being revised up to 0.4%. However, with energy shocks affecting industrial operations, future output is expected to weaken. In May, the eurozone manufacturing PMI fell from 52.2 in April to 51.6, the fastest pace of decline in three and a half years, due to input prices rising at the fastest rate in three years. The impact on the industry is expected to drag down growth in the second quarter. The region's economy has shown signs of recession, shrinking by 0.2% in the first quarter after growing by 0.2% in the previous quarter. However, news of a temporary agreement between the US and Iran to end the war and reopen the Strait of Hormuz could bring some hope to energy-intensive industries in the eurozone. Despite this, chief economist Joerg Kraemer of German Bank said that it is still too early to expect a rebound in the eurozone economy. "We expect good and bad news to alternate in the coming two months." Deutsche Bank still expects the eurozone economy to grow by only 0.6% this year.