Euro-zone factories buzzed with unespected strong output in July and August,suggesting that the region is coping well with higher interest rates and the strong Euro.

In particular France,Italy and Germany showed a strong output for the first two months of the third quarter.

Italian industrial output for August beat expectations,rising 1.3% from July and 3% from a year earlier,its largest annual gain since December 2006,as production of textiles,clothingand plastics soared,statistic office Istat said.