By Joshua Kirby
France’s industrial production fell again in September, reinforcing signs of a slowdown in the euro zone’s second-largest economy.
According to figures published on Friday by the French statistics office Insee, production fell by 0.5% compared to the previous month. Economists had expected output to rise 0.2% from the previous month, according to a Wall Street Journal survey. August production has since been revised slightly upward, to a decline of 0.1% from a previous estimate of minus 0.3%.
At the beginning of the year, French industry proved robust and boosted the overall economy. But most industrial sectors recorded a decline in monthly production in September, Insee said. The automotive and other transportation sectors fell 5.8% and 3.2%, respectively, with the latter reversing a positive trend from the previous month.
Food production and extractive industries also recorded a decline in production, while other industrial products increased slightly and the refining business recorded increased production.
Energy-intensive industries, meanwhile, continue to see sharp declines in production due to higher energy costs, Insee said. These include the steel industry and chemical production, which recorded double-digit declines compared to the same period last year before the energy crisis last year.
Lower industrial production adds to signs of stagnation in the French economy, which almost stalled in the third quarter, according to data released this week. Economists warn there could be a further slowdown in the future as domestic demand cools and exports stall.
Write to Joshua Kirby at [email protected]; @joshualeokirby
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