French IP At 10-Month Low In Feb

FRANCE FEB IP -4.7% M/M, -6.6% Y/Y; JAN +3.2% M/M

FRANCE FEB Manuf. Output -4.6% M/M, -7.1% Y/Y; JAN +3.3% M/M

• M/M French IP fell 4.7% in Feb, following Jan's increase, falling short of markets looking for a small uptick (BBG: +0.5%).
• Feb's decline marked the steepest fall since Apr 2020 where IP plummeted by -20.5%.
• Annual IP plunged by 6.6%, its lowest level since September after falling by 0.2% in Jan.
• Monthly mfg output decreased 4.6% in Feb, showing the lowest reading since Apr 2020, while annual mfg output fell to a six-month low of 7.1%.
• Feb's decrease was broad-based with capital goods production recording the largest decline (-6.8%), followed by consumer non-durable goods (-5.2%).
• While energy output dropped by 4.6%, production of intermediate and consumer durable goods was down 2.3% and 2.0%, respectively.
• While hard data showed a decline of IP in Feb, surveys continue to suggests solid business activity expansion in the French manufacturing sector.
• The manufacturing PMI rose to the highest level since 2000 in Mar, while Insee's business climate indicator for the manufacturing industry ticked up in Feb and remained stable in Mar, although it remained below the pre-crisis level .