France: Industrial productions contracts for second consecutive month
August 10, 2016
In June, industrial production contracted 0.8% over the previous month, which came in below the 0.5% drop observed in May. The result vastly undershot market expectations who expected a 0.1% expansion and reflected a contraction in both manufacturing and construction. Manufacturing activity, which tallied its worst reading in 11 months, was affected by the strikes against the labor reform bill that staged blockades and lockouts in all of France’s oil refineries.
In annual terms, industrial output declined 1.3% in June, which contrasted the 0.5% expansion tallied in May. June’s print marks the lowest reading since November 2014. Meanwhile, the annual average growth in industrial production slowed from 1.5% in May to 1.1% in June.