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France: Industrial production beats market expectations in January

March 10, 2011

In January, industrial output expanded 1.0% in seasonally adjusted terms over the previous month. The reading was well above the revised 0.2% increase tallied in December (previously reported: +0.3% month-on-month) and doubled market analyst expectations, which had industrial output expanding 0.5%. On an annual basis, industrial activity decelerated from a 7.0% rise in December to a 5.4% expansion in January. The stronger reading was driven primarily by the manufacturing sector, which rebounded to a 1.8% mom expansion in January from the 0.2% contraction registered in December. In addition, the construction sector also rebounded from a 5.9% contraction in December to a 7.9% expansion. Positive results in both sectors more than offset the 4.0% contraction in the mining, quarrying, energy, water and waste management sector. As a result of the monthly expansion, the trend continues to improve, with annual average industrial output growth rising from 5.8% in December to 6.0% in January.


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