EU chemical output rises 1.8% in January to five-month high: Eurostat

European Union chemicals output in January was at its strongest in five months, rising 1.8% from December on production increases in Germany and France, initial data from statistical agency Eurostat said Wednesday.

The seasonally adjusted sector index for the 27-country bloc edged up to 101.9 points, led by a 2.7% increase in the eurozone, thereby continuing its recovery from a 21-month low in November.

Compared with the same period in 2011, chemical output decreased 2.1% in the EU and 2.3% in the euro area, extending the year-to-year down cycle in both areas into its fifth straight month.

Among major producer countries, month-on-month increases in output were recorded in Germany (4.3%) and France (2.9%) following weakness in December. By contrast, output was down 2.9% in the UK, 3.2% in Italy and 5.9% in Spain. In Ireland, output jumped 15.6% after two months of double-digit declines.

Compared with the previous year, output shrank in 4.7% Germany, 8.3% in Italy, 3.8% in the UK, 4.1% in Spain and 0.3% in France. Growth in Ireland slowed to 9.9%, after having expanded by more than 19% over 2011.

On the segment level, Eurostat's estimates indicate fresh strength of EU base chemicals output -- 5.2% month-on-month -- in the wake of a six-month down phase, including an 8.3% hike for primary plastics as well as a 5.7% rise in the organic and 1% increase in the inorganic base chemicals segment.

Over the full year, EU factories lifted chemicals output slightly more than 1% year-on-year, according to Eurostat.