BRUSSELS Euro zone industrial production fell by far more than expected in March as output of capital goods plunged, although the sharp reduction appeared to be a result of figures from Ireland, which are typically volatile.

The European Union's statistics office Eurostat said on Monday that industrial production in the 20 countries sharing the euro fell by 4.1% month-on-month in March for a 1.4% year-on-year decline.

Economists polled by Reuters had expected a 2.5% monthly decrease and a 0.9% year-on-year gain.

Industrial production in Ireland fell 26.3% in the month and by 26.1% from a year earlier. Eurostat noted that Ireland's Central Statistics Office was reviewing its methodology for calculating the seasonal adjustment for industrial output.

Eurostat said the output of capital goods - goods such as buildings and equipment used to make products and provide services - fell by 15.4% on the month. Year-on-year, the decline was 2.1%.

All other components of industrial production declined, except that of durable consumers goods, which roes 2.8% in the month, although was down 0.8% from a year earlier.

For Eurostat release, click on:

http://ec.europa.eu/eurostat/news/news-releases

(Reporting by Philip Blenkinsop)