France's industrial production drops 0.9% in September

Industrial production in France fell by 0.9% month-on-month in September 2024, exceeding expectations for a 0.7% decline and following a downwardly revised growth of 1.1% in August.

France's industrial production drops 0.9% in September

This decline marks the first decrease in industrial activity since May and signals potential challenges ahead for the sector. The manufacturing sector contributed to this downturn, with output decreasing by 0.8%, a significant shift from the 1.4% increase reported in August. Particularly noteworthy were the declines in machinery and equipment goods, which saw a decrease of 0.9% compared to a 1.7% growth in the previous month, and other manufacturing, which dropped by 1.8%, down from 2.4% growth. Additionally, production in the mining and quarrying, energy, water supply, and waste management sectors decreased by 1.2%, a notable change from the 0.1% decline in August. The construction sector also reported a slight decrease, with output falling by 0.3%, although this represented an improvement from a 0.6% decline the previous month.

Industrial output falls 0.6% year-over-year, but quarterly growth shows resilience

Industrial output declined 0.6% year over year, indicating ongoing challenges in sustaining growth. However, industrial activity did experience a slight increase of 0.5% quarterly compared to the previous period, suggesting that while September was a setback, there may still be some resilience in the broader industrial landscape. The data reflects the complexities facing the French economy, highlighting the need for careful monitoring and potential policy adjustments to support recovery in the manufacturing sector.