French industrial output rose more strongly than expected in June as auto production increased, according to data today that coincided with a Bank of France survey pointing to prospects of a slight pick up in industry.
National statistics office Insee's monthly industrial output indicator showed an increase of 0.3 per cent in June, stronger than the flat reading forecast by economists polled by Reuters, compared with an upwardly revised 2.8 per cent rise in May.
The Bank of France forecast a flat reading for French gross domestic product in the third quarter from the previous three months amid signs of a slight pick up in the manufacturing and services sector. The French central bank said its monthly barometer of business sentiment in industry picked up in July to show a reading of 87 after 84 in June.
"According to forecasts, industrial activity is expected to post a very slight rise thanks to the positive outlook in the automotive, consumer goods and agri-food sectors," the Bank of France said in a statement.
Insee said the strongest increases in industry output came in the transport equipment sector, which posted a 3.6 per cent rise, with car production, which has been boosted by government-backed trade in incentives, rising 5.3 per cent.
Electrical equipment fell 0.8 per cent, while coke and refinery output was down 0.4 per cent and food and agriculture output was unchanged.
Preliminary second quarter GDP data is due to be released on August 13th. A previous Bank of France survey predicted a 0.4 per cent contraction quarter-on-quarter for the period.
Reuters