According to the data published by Eurostat and the National Institute of Statistics, euro zone industrial output rose by far less than expected in May 2011, appearing to confirm the economy went through a soft patch in the second quarter with declines in production of consumer goods.

Eurostat said that industrial production, a key component of gross domestic product, rose by 0.1% MoM for a 4% YoY gain in the 17 countries using the euro.

Economists polled by Reuters had expected a 0.5% monthly rise and a 4.8% annual increase. The rise in output was driven by a 0.9% rise in energy output from April and a 0.6% increase for capital goods.

However, durable and non durable goods production fell by 0.5% and 0.4% respectively from the previous month. Output of intermediate goods such as steel was down 0.1%.

Of the 14 euro zone countries for which details were supplied, industrial production increased in 11, including the first rise in five months in Greece, and fell in three in Estonia, Italy and Malta. Economists expect GDP to slow after a 0.8% expansion in the first three months of 2011.

Ms Jennifer McKeown of Capital Economics said industrial surveys suggested the slowdown was spreading from the periphery to the core of the single currency bloc, not helped by the high level of the euro. She added that "Given this and the fact that tight fiscal policy will keep domestic spending subdued, the recovery in the wider euro zone economy may soon grind to a near halt."

Mr Philippe Ledent economist at ING said that the modest figures had come as no surprise. He added that "We will probably have quite neutral numbers for June and the coming months. As long as it is not a strong decrease it's just the confirmation of a soft patch and nothing more."