Industrial output in the Eurozone fell 2 percent in September, compared to the previous month, indicating that recovery in the sector has ended.

Data released by the European Union's Statistics Office on Monday showed that in the third quarter as a whole, production expanded by 0.9 percent, after a 0.2 percent gain in the second quarter, suggesting that the wider economy may have expanded modestly in the third quarter.

A Reuters' poll of analysts showed that output in the region would fall 2.2 percent. According to Eurostat data, industrial output in Germany and France, the monetary union's biggest economies, dropped 2.9 percent and 1.9 percent respectively in September. In Italy, the output plunged 4.8 percent.

However, Ben May, European economist at Capital Economics, said the weak end to the quarter suggests that industrial output may contract pretty sharply in the fourth quarter and that the Euro area is moving decisively into another recession.

In all, then, these data appear to support our view that the euro-zone will soon fall back into another fairly deep recession, said May.

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