France: Industrial output rebounds in July
Industrial output grew 0.8% in month-on-month seasonally-adjusted terms in July, which contrasted June’s 0.9% decrease. The reading reflected a broad-based upturn, with activity in the manufacturing, mining and quarrying and energy sub-sectors all improving in July.
On an annual basis, factory output rose 2.7% in July (June: -0.3% yoy), the best result since August 2021. Moreover, the trend improved, with the annual average growth of industrial production coming in at an over one-year high of 0.5% in July, up from June’s 0.2% reading.
Charlotte de Montpellier, senior economist at ING, commented on the print:
“As far as France’s economic outlook is concerned, the rebound in industrial production in July is good news for third-quarter GDP. Household consumption of goods also rose over the month, so the third quarter has got off to a good start. Added to this is the very good tourist season in France this summer, which should boost growth. Today’s data therefore suggests that French GDP will not contract in the third quarter”