(BRUSSELS) - Factories and refineries in the 15 nations sharing the euro cut production faster than expected in March, according to official EU data released Wednesday.

Industrial output in the eurozone eased 0.2 percent in March from February but was up 2.0 percent over the same month in 2007, the European Union's Eurostat data agency said.

"The latest eurozone industrial news suggests that the sector may be beginning to flag after a relatively strong start to the year," said Ben May at consultants Capital Economics.

The figures, which were adjusted for seasonal variations, fell short of economist forecasts for production to fall 0.1 percent over one month and increase 2.4 percent from March 2007.

They also marked a slowdown from February when new orders grew 0.3 percent over one month and 3.2 percent over one year, Eurostat said.

Weaker output of durable and non-durable consumer goods, as well as goods companies use to make other products, weighed on overall industrial production, the data showed.

In the 27-nation EU as a whole, industrial output eased 0.1 percent over one month in March and increased 1.8 percent over one year.

Economist Howard Archer at consultants Global Insight said the data painted a dark outlook for the industrial sector in the months ahead as it struggles to cope with a range of headwinds.

"We suspect that Eurozone manufacturers will find life increasingly difficult over the coming months as they are buffeted by the strong euro, muted consumer spending, softer growth in key export markets, elevated oil and commodity prices, and tight lending conditions," Archer said.

Further details - Eurostat

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