By Joshua Kirby
French industrial output slid backward in August from the previous month, suggesting some emerging weakness in what has to-date been a relatively robust economy.
Total output was 0.3% less than in July, data from national statistics body Insee showed Thursday. Economists polled by The Wall Street Journal had expected a slightly steeper fall on month at 0.5%.
The figure for July was revised down to 0.5% growth from 0.8% previously.
The French economy has proved relatively robust over recent months, with output increasing and growth coming in beyond forecasts. The eurozone’s second-largest economy is expected to expand this year, according to European Union estimates, in contrast to prolonged weakness and an expected contraction in neighbor Germany. The lower output in August suggests that a tight monetary environment, following successive interest-rate increases in the eurozone, is weighing on demand.
French industry in August was particularly dragged by lower pharmaceutical output, falling 5.3% on month, while the automobile, construction, and food-production industries also booked lower output. In contrast, other transportation–which includes production of trains and airplanes–rose 8.6% on month.
Write to Joshua Kirby at [email protected]; @joshualeokirby
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