French IP Slowed in May

FRANCE MAY IP -0.3% M/M, +20.5% Y/Y; APR +0.1% M/M

FRANCE MAY Manuf. Output -0.5% M/M, +22.3% Y/Y; APR -0.1% M/M

• M/M French IP dropped by 0.3% in May, following two months of gains, in contrast to markets looking for an increase of 0.8%.
• Compared to Feb 2020, production remainsed5.6% lower in May.
• Annual output rose by 20.5% in May, after surging by 44.2% in Apr, reflecting base effects as output fell sharply at the beginning of the pandemic in early 2020.
• Monthly mfg output ticked down as well by 0.5% in May, marking the second successive decline, while annual mfg production rose at a slower pace of 22.3%.
• Production of consumer durables recorded the largest m/m increase in May, up 2.3%, following consumer non-durable output, which rose 1.8% in May.
• Energy output increased for the third consecutive month, although at a slower pace of 1.1%.
• Capital goods production saw the biggest drop in May, down 2.7% after rising for the last two months.
• Intermediate goods output eased by 0.5% in May, posting the first decrease since Feb.