Industrial production in the European Union rose more than expected in July and wage growth picked up in the second quarter.
Eurostat, the EU's statistics office, said industrial production in the 13 countries using the euro rose 0.6% month-on-month, up from an upwardly revised reading of no change in June.
In year-on-year terms, industrial output gained 3.7% in July after an upwardly revised 2.4% increase in June.
Economists polled by Reuters had expected a 0.3% monthly gain in July for a 3.1% annual rise.
Eurostat also said the growth of nominal hourly labour costs in the 13 countries using the euro picked up again in the second quarter to an annual 2.5% from an upwardly revised 2.3% in the first three months.
Wages grew by 2.5% year-on-year in the second quarter, up from 2.3% in the first. Social contributions and taxes paid by employers as part of the wage package rose 1.8%, slowing from 1.9%.
The European Central Bank carefully watches wage growth because of its role in building up inflationary pressures and has said wages should expand in line with productivity.
The ECB has signalled it will raise interest rates from the current 4% to stem price growth pressures in the robust euro zone economy. It left them unchanged last week to help calm markets, in turmoil because of a global credit crunch.
The monthly increase in industrial production was driven mainly by intermediate goods and non-durable consumer goods, while consumer durables fell 0.1% against June.
In annual terms capital goods production rose the most, followed by intermediate goods and non-durable consumer goods.
Industrial production accounts for less than a third of the euro zone's gross domestic product, which is driven mainly by the services sector.
