Output at factories in the euro zone unexpectedly fell in March, the latest in a series of disappointing numbers signalling that the region’s recession may not be as mild as policymakers hope.

Industrial production in the 17 countries sharing the euro fell 0.3 per cent in March from February, the EU’s statistics office Eurostat said today. Economists polled by Reuters had expected a 0.4 per cent increase in the month.

The figures stood in contrast with German data last week showing output in the euro zone’s largest economy up 2.8 per cent for the month, underlying the division in the region.

Many economists expect Eurostat to show today that the euro zone entered its second recession in just three years at the end of March, with households suffering the effects of austerity programmes aimed at cutting debt and deficits.

European officials have repeatedly said the slump will be mild, with a recovery in the second half of this year. – (Reuters)