French IP Recovery Ongoing

FRANCE JUN IP +12.7% M/M, -11.7% Y/Y; MAY +19.9% M/M

FRANCE JUN Mfg Output +14.4% M/M, -12.5% Y/Y; MAY +22.2% M/M

• After sharp rebound in May, French IP ticked up again in Jun, rising 12.7% and came in stronger than markets expected (BBG: 8.7% m/m).
• Annual output declined again, down 11.7%, the slowest pace of deceleration since Feb
• Monthly Mfg production increased as well in Jun, the second uptick in a row, while y/y output fell further.
• Insee noted that production is still 11% below Feb's level, while mfg output is 12.4% lower.
• All sectors saw m/m increases with consumer durable goods showing the largest uptick, up +36.3% after jumping 188.8% in the previous month.
• Capital goods grew 24.0%, followed by Intermediate goods gaining 10.3%, while consumer non-durable goods ticked up 7.8%.
• Energy output saw the smallest increase, rising 4.4% in Jun.