Industrial output in France unexpectedly contracts in June

Reuters.com – 09/08/13
Despite recent data illustrating the contrary, French industrial output unexpectedly shrank in June, indicating that any recovery of the country’s economy will be a fragile one. While business confidence surveys and economic data suggest that France is freeing itself from the recession, the muted domestic demand is holding back the economy. Statistics released today by the agency INSEE showed a fall of 1.4% in industrial output this month, following on from a 0.3% drop recorded in May. Comparing the French output with that the largest economy in the euro zone, Germany industrial output rose by 2.4% in June – the fastest pace growth recorded for almost two years.

The fall in the French output has been attributed to the decrease in the production of food and agricultural goods, as well as in energy and mining. Comparing quarter with quarter, it was noted that industrial output was up 1.4% in this quarter compared to the last. However, economist at HIS Global Insight, Diego Iscaro, has said that the difficult domestic conditions in the country will mean that any improvements are likely to be “gradual and prone to relapses”. Read More