French IP rebounded in Jan

FRANCE JAN IP +3.3% M/M, -0.2% Y/Y; DEC -0.7% M/M

FRANCE JAN Manuf. Output +3.3% M/M, -1.0% Y/Y; DEC -1.4% M/M

• M/M French IP rebounded to 3.3% in Jan, following two consecutive months of decline and coming in markedly stronger than markets expected (BBG: +3.3%).
• Annual IP eased by 0.2% in Jan, showing the highest reading since Nov 2019.
• Mfg output rose by 3.3% as well, showing the highest level since Jul, while annual mfg output fell by 1.0%.
• Compared to Feb 2020, IP was down 1.7% in Jan, while mfg output was still 2.6% lower.
• Jan's rebound was broad-based with production of consumer non-durables showing the largest uptick, rising by 7.6% on a monthly basis after falling by 2.2% in Dec.
• Consumer durables output slowed to 3.8%, while capital and intermediate goods output rebounded to 2.2% and 1.1%, respectively.
• Energy production increased by 2.8% in Jan, up from 1.9% seen in Dec.
• Jan's increase is in line with forward-looking survey evidence such as the manufacturing PMI which signals solid growth in the sector in both Jan and Feb.
• Moreover, Insee's business climate in the mfg sector recovered further since the beginning of the year.