FRANCE DATA
- The deterioration was driven by manufacturing production (which accounts for over 80% of industrial production). This component fell 2.7% M/M (vs growth of 0.5% in April). As a result on a Y/Y basis, it saw its weakest reading since February 2021 printing at -3.9% Y/Y (vs 1.4% prior).
- Within manufacturing production, 4 of 5 sub components deteriorated. In particular, 'Other industrial products' decreased 3.5% M/M (vs 0.9% growth in April) - making it the largest fall since April 2020 during the Covid pandemic. In addition, Capital goods declined 4.6% M/M (vs a 2.8% rise in April) - the weakest level since December 2023. This was followed by Agri-food industries seeing production fall 0.6% M/M (vs -0.7% last month) and Transport equipment production falling 0.7% M/M (vs -2.4% M/M prior).
- Outside manufacturing, the main extractive industries, energy and water production area saw its third consecutive monthly improvement of +1.1% M/M (vs +1.3% revised prior).
- The press release highlights "Production over the last three months (March to May 2024) is lower than that of the same three months of the previous year in the manufacturing industry (-0.5%) as in the industry as a whole (-0.4%)."
- The press release also continues to state that due to higher energy costs relative to Q2-21 (i.e. before they were impacted by the Russian invasion of Ukraine), production in energy-intensive manufacturing is much lower. Most notably for steel (-26.0%) and basic chemicals (-14.7%).
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