European output slumps in new sign of wavering economic recovery

PARIS, July 10 (AFP): Industrial production slumped across Europe in May, sparking fears that the region's fragile economic recovery may have already peaked, analysts said Thursday.

France, Italy and the Netherlands all reported a slew of poor data Thursday, joining Germany and Britain which reported falling output earlier this week. "All were sharply below consensus and our expectations," said Christian Schulz, economist at German bank Berenberg.

French industrial production fell by 1.7 per cent in May after posting slight growth the month before, while Italy's slid 1.2 per cent -- its biggest fall since November 2012.

The Dutch posted a 1.9 per cent drop, and German industrial output fell for the third month in a row in May, this time by 1.8 per cent. Output in Britain, which is not a eurozone member, slipped by a more modest 0.7 per cent.

Calendar effects played a role, as a late Easter weekend this year might have led workers to take their holidays in May, thereby reducing production.