French Industrial Production Recovers In July

RTTNews | 671 days ago
French Industrial Production Recovers In July

(RTTNews) - France's industrial production rose in July, led by a rebound in manufacturing, preliminary data from the statistical office INSEE showed Friday, though the momentum is unlikely to be sustained in the coming months amid weakening demand globally and high interest rates. Total industrial production rose 0.8 percent from June, when output fell 0.9 percent. Economists had forecast a modest 0.1 percent growth.

Manufacturing output grew 0.7 percent after a 1.1 percent decline in the previous month, which was revised from 1.0 percent. Within manufacturing, production of transport equipment rebounded in July with a 0.8 percent growth. Recent purchasing managers' survey data from S&P Global showed last week that the manufacturing sector remained in contraction territory amid a steep fall in demand that led to further deterioration in production, employment and business confidence. Cost pressures continued to weaken and producers lowered the prices charged amid rising competition, the PMI survey showed. ING economist Charlotte de Montpellier said the rebound in industrial production in July is good news for third-quarter GDP along with the recovery in household consumption of goods and the boost from the very good tourist season in France this summer.

"Today's data therefore suggests that French GDP will not contract in the third quarter," the economist said.

However, strong growth over the quarter is unlikely and the following quarters are likely to be synonymous with virtual stagnation, de Montpellier added.

The second largest euro area economy grew 0.5 percent sequentially in the second quarter after logging nil growth a quarter ago.

ING expects France's GDP growth to average 0.8 percent this year and 0.6 percent next year.

This projection is much lower than the very optimistic assumption of 1.4 percent for GDP in 2024 on which the government based its 2024 budget, the economist said.

The group combining mining and quarrying, and utility sectors also recovered logging a 1.2 percent increase in output, INSEE data revealed.

Construction output grew 0.6 percent after a 2.6 percent decline in the previous month. Among the main industrial groups, production of consumer durables continued to fall, while manufacture of intermediate goods, energy and non-durables recovered. Capital goods production grew at a faster pace.

read more
German Exports Decline As Tariff Treats Damp Demand From US

German Exports Decline As Tariff Treats Damp Demand From US

Germany's exports declined for the second straight month in May due to a sharp fall in demand from the US amid tariff threats, data from Destatis revealed on Tuesday. Exports decreased by more-than-expected 1.4 percent month-on-month in May, following April's 1.6 percent fall. Economists had forecast a 0.2 percent drop. Imports slid 3.8 percent from last month.
RTTNews | 2 days ago
Eurozone Retail Sales Drop For First Time In 5 Months; Services Output Fall

Eurozone Retail Sales Drop For First Time In 5 Months; Services Output Fall

Euro area retail sales decreased for the first time in five months and services production declined in May, suggesting a slowdown in the second quarter. Retail sales logged a monthly fall of 0.7 percent in May, reversing April's 0.3 percent increase, Eurostat reported Monday. Sales were expected to drop 0.8 percent. Another data from Eurostat showed that services production decreased 0.3 percen
RTTNews | 3 days ago
Eurozone Investor Confidence Strongest In More Than 3 Years

Eurozone Investor Confidence Strongest In More Than 3 Years

Eurozone investor confidence rose to the highest level in more than three years in July suggesting that fears of recession triggered by the US tariff shocks are completely off the table, survey data from the behavioral research institute Sentix showed on Monday. The investor confidence index advanced to 4.5 in July from 0.2 in June. The reading was the highest since February 2022 and also stayed
RTTNews | 3 days ago
German Industrial Production Rebounds In May

German Industrial Production Rebounds In May

Germany's industrial production rebounded in May driven by robust demand for automobile and pharmaceutical products, official data revealed on Monday. Data released by Destatis showed that industrial production grew 1.2 percent in May from a month ago, confounding expectations for a decline of 0.6 percent. Output in April was revised down to show a 1.6 percent fall compared to the 1.4 percent d
RTTNews | 3 days ago
German Factory Orders Log Bigger-Than-Expected Fall

German Factory Orders Log Bigger-Than-Expected Fall

Germany's factory orders declined more than expected in May on falling demand from both the domestic market and other euro area economies, official data revealed on Friday. Factory orders decreased 1.4 percent from a month ago, Destatis reported. Orders were expected to drop 0.2 percent after an upwardly revised 1.6 percent rise in April. Orders declined for the first time in four months.
RTTNews | 6 days ago
Eurozone Private Sector Expands More Than Estimated

Eurozone Private Sector Expands More Than Estimated

The euro area private sector expanded more than previously estimated in June as both manufacturing and services sectors registered higher output, final survey results from S&P Global showed on Thursday. The HCOB final composite output index advanced to 50.6 in June from 50.2 in May. The reading was well above the flash estimate of 50.2.
RTTNews | 7 days ago
Eurozone Inflation Hits ECB Target

Eurozone Inflation Hits ECB Target

Euro area inflation rose slightly to hit the European Central Bank's 2 percent target in June on slower fall in energy prices and the rise in services inflation, flash estimate from Eurostat showed on Tuesday. Annual inflation climbed to 2.0 percent in June from 1.9 percent in May. The rate reached the inflation target and also matched economists' expectations.
RTTNews | 9 days ago