French IP Recovery Ongoing and Stronger than Expected

French IP increased for the sixth successive month in Oct, rising by 1.6% m/m and coming in stronger than markets expected (BBG: 0.4%).

Sep monthly IP was revised up to 1.6% from 1.4% reported previously.

Annual output remained in negative territory, however the indicator declined at a slower pace of 4.2% than in Sep.

Manufacturing output slowed in Oct with monthly production ticking up 0.5% after Sep's 2.3% increase, while the y/y rate improved to -5.7%.

Compared to Feb, production is still 3.6% lower, while manufacturing output is 5.0% below the pre-crisis levels.

Energy output showed the largest monthly gain, up 8.6%, followed by consumer non-durables (+1.1%) and intermediate goods (+0.9%).

On the other hand, consumer durables saw the biggest decline, falling by 2.6% m/m, followed by capital goods output which eased by 0.4%.