Surprise contraction for French industrial output in July

Disappointing figures from France this morning as industrial output shrinks from July. Analysts have been hoping for the sector to return to growth.

A decrease of -0.6 per cent from July's figure of -1.4 per cent failed to hit market predictions of a 0.6 per cent increase.

July saw a significant slump in the manufacture of transport equipment (-6.7 per cent). Only two of five components saw an increase, with food production and beverages up 0.7 per cent.

Output went down in other manufacturing (-1.7%) and in the manufacture of food products and beverages (-2.6%). On the opposite, output improved in themanufacture of transport equipment (+1.0%) and in the manufacture of coke and refined petroleum products (+3.0%). It was stable in the manufacture of electrical and electronic equipment; machine equipment.

(INSEE)