Reuters reported that Euro zone industrial production plummeted by more than a fifth year on year in March setting a record and indicating first quarter economic output could have contracted more than expected.

European Union's statistics office, Eurostat said that Industrial production in the 16 countries using the euro fell 2% MoM and 20.2% YoY. Economists polled by Reuters had expected a 1% monthly decline and an 18% YoY drop.

Mr Kenneth Broux an economist at Lloyds TSB Corporate Markets said that "This sure is a horrible number.”

Economists said that the data offered no cause for optimism about green shoots of economic recovery, seen in some forward looking business surveys.

Mr Stuart Bennett European economist at Calyon said that "There are no green shoots here, everything is either a quarter or a fifth down on the year. Perhaps Q2 GDP will prove better than Q1 but the outlook remains very weak."

Industrial production accounts for roughly 17% of euro zone gross domestic product and the grim March output data could mean the economy shrank more than economists expect.

(Sourced from Reuters)