Euro-Zone Industrial Production Prices rose 0.9% in August, but fell shy of economists’ expectations of 1.2%, adding signs that the Euro-Zone is slowly recovering from the its deepest recession since World War II. In annual terms, the output fell 15.4% in August from 15.9% the month prior, marking it the slowest year-end decline in eight months. The data highlighted European output of capital goods rising 1.1% in August from July, while durable consumer goods such as washing machines increased to 5.3% from the previous month. The rise in durable goods provides further indication of positive consumer sentiment as individuals increase their spending appetite. The revision from last month which change from negative to positive allowed Industrial Production to stay afloat for a 4th consecutive month. With borrowing costs at a record low and ECB President Jean-Claude Trichet stating the euro-zone is recovering “at a gradual pace,” sluggish growth into 2010 seems evident on the back of a weak labor market. Therefore, despite the growth in industrial production, withdrawals of stimulus measures and a strong euro are hurdles that remain. The International Monetary Fund (IMF) said that it expects the euro-region economy to shrink 4.2% this year before expanding 0.3% in 2010.