Eurozone industrial output plunged unexpectedly sharply in March, highlighting the severity of continental Europe’s recession, even though signs have emerged that the worst of the downturn is over.

Industrial production in the 16-country region was 20.2 per cent lower than a year before – the largest year-on-year drop since records began in January 1991, according to data released by Eurostat, the European Union’s statistical office, on Wednesday.. The latest fall took production back to a level not seen since November 1997.