Industrial new orders in the euro zone were significantly weaker than expected in April, data showed this morning.
Orders fell 0.2 per cent month-on-month in 12-nation single currency area in April, giving a 4.4 per cent annual rise, European Union statistical agency Eurostat said.
Economists had expected a 1.4 per cent monthly rise in orders and a 11.5 per cent year-on-year gain.
But analysts said underlying growth prospects were good, playing down the highly volatile figure.
"The industrial orders data do not undermine the view that the euro zone economy is still performing relatively well and that the ECB will continue to tighten monetary policy steadily," said Howard Archer, European economist at Global Insight.
Excluding volatile orders for ships, railway and aerospace equipment, new orders in the countries using the euro rose 2.3 per cent month-on-month for a 5.9 per cent annual increase, Eurostat said.
Orders grew most for basic metals, followed by chemicals, in April.
Eurostat revised upwards the new orders numbers for March, reporting a 1.6 per cent fall month-on-month and an annual growth of 13.1 per cent versus a previous reading of -2.4 per cent and 12.1 per cent, respectively.
ECB President Jean-Claude Trichet said yesterday that euro zone economic growth is on a firm footing with upside risks to inflation from high oil prices, signalling more rate rises lie ahead this year.
ECB staff forecast the euro zone economy will grow about 2.2 per cent this year, easing to 1.8 per cent next year.