French Industrial Output Falls Unexpectedly

(RTTNews) - France industrial production declined unexpectedly in August despite the rebound in the manufacturing output, data published by the statistical office INSEE showed Monday.

Industrial output fell 0.3 percent month-on-month, slower than the 0.6 percent decrease in July. Output was expected to grow 0.2 percent.

Manufacturing output rose 0.3 percent in August, in contrast to the 0.8 percent decrease in July.

Output fell back in mining and quarrying, energy, and water supply deceased 2.4 percent, mainly due to a decrease in electricity production, after reaching its highest level since December 2021 in July.

In August, output increased in construction by 0.7 percent after remaining flat in July.

Today's data confirms that industry lacks sufficient momentum to become a genuine growth engine, ING economist Charlotte de Montpellier said.

"With budget uncertainty and tightening financial conditions, the French economy remains at risk of stagnation," the economist added.