French IP Rebounded Strongly in March

FRANCE MAR IP +0.8% M/M, +13.7% Y/Y; FEB -4.8% M/M

FRANCE MAR Manuf. Output +0.4% M/M, +15.7% Y/Y; FEB -4.8% M/M

• M/M French IP rebounded to 0.8% in Mar, following Feb's decline, but falling short of markets looking for a larger increase of 2.0%.
• Compared to Feb 2020, production remains 5.9% lower in Mar.
• Annual output surged by 13.7% in Mar, reflecting base effects as output fell sharply at the beginning of the pandemic in early 2020.
• Monthly mfg output ticked up as well by 0.4% in Mar, after dropping by 4.8% in the previous month, while annual mfg production rose markedly by 15.7%
• Energy output recorded the largest m/m increase in Mar, up 3.2% after falling by 4.5% in Feb.
• Capital and consumer non-durable goods production rebounded to 0.8% and 0.6% in Mar, following declines for both indicators in Feb.
• While intermediate goods production fell at a slower pace of 0.1% in Mar, consumer durables output deteriorated to -4.1%.
• Survey evidence continues to signal expansion in the mfg sector with the manufacturing PMI remaining well above the 50-mark and Insee's business climate indicator for the mfg sector shifting above the long-term average.