French industrial production misses forecasts in June
(ShareCast News) - Industrial production in France surprised to the downside in June amid broad-based declines in all sectors.
Total output was 1.1% lower month-on-month, according to INSEE, more than economists' forecasts for a fall of 0.6%.
Energy and mining output fell by the most in comparison to the month before, registering a drop of 2.2%, while manufacturing production declined by 0.9%.
Weakness in factory activity was also broad-based, with transport equipment registering a decrease of 4.4% on the month and production of machinery equipment shrinking by 2.7%.
Nevertheless, the latter followed a jump of 2.0% in May.
Construction output meanwhile decreased by 0.6%, adding to a 0.8% drop in the previous month.
In terms of quarterly rates of change, industrial production was 1.2% higher than over the previous three months.
Following the release of Thursday's data, Barclays Research said the figures were consistent with the already released 'flash' estimate for second quarter GDP growth of 0.5%.
Barclays's Apolline Menut said: "Looking ahead, although PMIs ebbed in July, they remain well above their long-term average, echoing the positive picture painted by the Banque of France and INSEE surveys and pointing to a sustained positive momentum in Q3. We look for GDP growth to remain solid, rising by 0.5% q/q in Q3 17 for a fourth consecutive quarter."