Euro zone industry output rose in August much faster than expected

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Euro zone industrial production soared in August far beyond expectations as manufacturers boosted investment despite fears of an upcoming recession, official estimates showed on Wednesday.

The European Union's statistics office Eurostat said industrial production in the 19 countries sharing the euro increased 1.5% month-on-month in August for a 2.5% year-on-year rise.

Economists polled by Reuters had expected much more modest increases of 0.6% on the month and 1.2% year-on-year, after production fell in July.Output of capital goods, such as machinery, rose 2.8% compared with July, in a sign of optimism pointing to new appetite for investment.Among the bloc's largest economies, France's industrial production rose 2.5% on the month, Italy's was up by 2.3%, whereas output declined in Germany by 0.5%.

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