Berlin - European industrial production plunged in January, figures released Friday showed, pointing to the recession gaining strength as the new year got underway.

While less than expected, the 3.5-per-cent month-on-month slump in output in the 16-member eurozone represented an annual fall of 17.3 per cent and raises the prospects of a major contraction in the currency bloc's first-quarter economic growth rate.

Analysts had forecast a 4-per-cent fall in January with the latest output data released by the European Union's statistics office Eurostat, coming in the wake of a slew of figures underscoring a dramatic slump in global trade. (dpa)