In a surprising turn of events, French industrial production experienced a rebound in July, indicating the relative strength of the Eurozone’s second-largest economy.
According to data released by Insee, the national statistics agency, industrial output (including manufacturing, energy, and construction) rose by 0.8% in July, following a slight decline the previous month. Economists polled by The Wall Street Journal had expected a further slip in production for July.
The overall increase in production was driven by sectors such as manufacturing, food production, auto production, and extractive industries. However, some sectors like refining and industrial machinery saw a decrease in output compared to the previous month.
The unexpected rebound in output suggests that French industry is managing well despite tight monetary policies enforced by the European Central Bank and weakening external demand. Furthermore, the French economy outperformed Germany in the second quarter, growing by 0.5%. As a result, forecasts for the year’s growth may be revised upward, as indicated by central bank governor Francois Villeroy de Galhau earlier this week.
