French factory output bounces back in November

French industrial production unexpectedly slumped in November, weighed down by a large drop in output in the energy and mining sector, but the quarterly rates of change gave some economists a reason to be optimistic.

Analysts had penciled in a drop of 0.3% month-on-month.

In comparison with a year ago industrial production levels were 2.8% higher, down from 3.7% in October.

Total industrial production shrank at a 0.9% month-on-month pace as output in energy and mining fell 6.7%.

However, factory production bounced back by 0.4% month-on-month after sliding by the same magnitude in October.

Output of transport goods and other industrial products rose by 0.3% and 1.0% versus the month before, respectively.

More significantly, production was higher by 0.9% quarter-on-quarter, following a gain of 0.6% over the previous three months.

"This will help GDP growth, by offsetting what is likely to be a slowdown in consumers’ spending," Pantheon Macroeconomics said in a research note sent to clients.

Indeed, both industrial and manufacturing output growth had both accelerated recently, the research house added.