Euro zone industrial new orders jumped more than expected in August.
The European Union's statistics office said industrial new orders rose 3.7 per cent month-on-month for a year-on-year surge of 14.3 per cent, driven by demand for trains, boats and planes as well as basic metals and metal products.
Although orders for transport equipment tend to be volatile, even without them industrial orders rose 2.7 per cent month-on-month and 12.6 per cent year-on-year, beating consensus expectations.
The orders, which will eventually translate into output, are likely to be seen as another sign of robust economic activity in the single currency area, where economic growth is expected almost to double this year to 2.5 per cent against 2005.
Economists expect the European Central Bank rate to raise interest rates by 25 basis points to 3.5 per cent in December to stem medium-term inflationary pressures as the economy and money supply grow.