France Output Growth ‘Pleasant Surprise’

Industrial output in France rose beyond analyst expectations over the course of July according to official figures released today, suggesting that the French economy may be performing better than had been previously thought.

In the figures released today by the French national statistics office, industrial output grew faster than many analysts had predicted, seeing a 1.3% growth from the previous month’s figures, compared to widespread projections of just a 0.4% growth.

The news comes amidst fears that the French economy was in for a slowdown after data showing a decline of 0.6% in industrial output over June, and slowed economic growth over the second quarter of the year which reflected an overall poor outlook for growth across the Eurozone.

With European growth falling short of analyst expectations, and fears that the ECB could be poised next month to increase interest rates, the news comes as a pleasant surprise for the French economy.

With production increasing in July, largely driven by the automobile manufacturing sector, these fears were largely dismissed by the results released today helping to buoy otherwise rock-bottom investor confidence.

In July, car manufacturing output selectively had grown by 4.7% from June after falling over the course of that month, reflecting a significant turnaround in fortunes for the French manufacturing sector, and analysts are hoping, for the economy overall.

With stiff competition from German manufacturing, and overall poor economic performance in recent years, the French markets enjoyed the boost through today’s figures, trading up slightly amidst other negative factors.

The hope amongst investors now is that the economy will continue to gain and build upon this momentum. With France undergoing widespread economic reform within the boundaries of the Eurozone, analysts are optimistic that today’s result could be indicative of a turnaround of the French economy.

Story link: France Output Growth ‘Pleasant Surprise’