(Alliance News) - Industrial production in the eurozone rebounded in May and investor confidence continued to climb in July, suggesting tentative signs of recovery in the bloc despite lingering uncertainty, data showed Tuesday.

Seasonally adjusted industrial output rose 1.7% in the eurozone and 1.5% across the EU in May from April, according to Eurostat. The increase follows a 2.2% drop in the euro area and a 1.6% decline in the EU in April and was driven by sharp gains in non-durable consumer goods and capital goods.

Compared to a year earlier, eurozone industrial production rose 3.7%, with EU output up 3.4%.

Among the bloc's largest economies, Germany posted a 2.2% monthly rise. Ireland saw the largest gain at 12%, while declines were reported in Croatia, Slovakia, and Belgium.

The strongest annual growth came from Ireland, up 40%, with Finland and Sweden also showing solid gains. Belgium, Bulgaria, and Denmark saw the steepest drops.

Meanwhile, the latest ZEW economic sentiment survey showed continued improvement in July. The ZEW indicator of economic sentiment for Germany rose 5.2 points to 52.7, while the eurozone measure edged up 0.8 points to 36.1.

Assessment of current conditions also improved, with the German index rising 12.5 points to -59.5. The eurozone current conditions index increased 6.5 points to -24.2.

ZEW President Achim Wambach said hopes of a resolution to US-EU trade tensions and potential fiscal stimulus in Germany were lifting sentiment, particularly in sectors such as mechanical engineering, metal production, and the electrical industry.

By Eva Castanedo, Alliance News reporter

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