BRUSSELS (Reuters) - Euro zone industrial new orders rose in April at their fastest annual pace in 10 years, data showed yesterday, as an export-driven economic recovery continued despite tension in the currency area's debt markets.

Industrial new orders in the 16-country zone gained 0.9 percent month-on-month and 22.1 percent year-on-year, European Union statistics office Eurostat said.

They surged by a revised 5.1 percent month-on-month in March, a small downward correction from the previous reading, highlighting partly the collapse of industrial activity in early 2009 during the worst economic crisis in decades.

"It's quite a good reading. After the surge we have seen in the month of March, this is really another strong report. And it suggests the manufacturing sector is still on a really good recovery path," said Juergen Michels, economist at Citigroup.

The annual rise was the steepest since May 2000 and bigger than the 21.5 percent expected on average by analysts polled by Reuters. They had forecast a 1.6 percent month-on-month gain. The data reinforced a positive picture for manufacturers, driven by demand from abroad and a weakening euro, while domestic economies struggle. Industrial orders point to trends in activity as they translate into production in coming months.

But in May the euro area was hit by a sovereign debt crisis linked to Greece's budget deficit problems, which analysts say might have hit the real economy.

Without volatile orders for ships, planes and trains, the monthly increase in April was 1.1 percent and the year-on-year jump 23.1 percent.