French Industrial Output Falters, Belies Rosier Outlook
French industrial output fell by 0.6 percent in July, following a 1.4 percent drop the previous month, official data said Tuesday, belying other indications that the economy is perking up.
The drop was more pronounced in the manufacturing sector at 0.7 percent in July from the previous month, including a 11.2 percent drop in car output, said the French statistics agency INSEE.
The data is in contrast with recent more upbeat data, including forward-looking surveys of manufacturers indicating that the pace of contraction in French industry had slowed considerably.
France emerged from recession in the second quarter of the year, albeit largely because of energy consumption in a hard winter.
Some economists have questioned whether the economy will continue expanding despite some other indicators suggesting that activity is picking up.
The Bank of France on Monday raised its forecast for growth in the third quarter, the period from July through September, from 0.1 to 0.2 percent.
The Organisation for Economic Cooperation and Development said Monday that its index of composite leading indicators "for France points to a tentative positive change in momentum."
Source: Agence France Presse
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