French industrial production drops in June on weakness in manufacturing

France’s industrial production dropped for the second straight month in June on subdued manufacturing, according to an official report. French statistics office, INSEE, stated that the nation’s industrial output fell 0.8 percent on a month-on-month basis in June, following a 0.5 percent drop recorded in May. Output in the manufacturing industry dropped 1.2 percent on sequential basis in June, after growing 0.1 percent in May.

In the second quarter of 2016, output dropped a bit in the manufacturing industry. Manufacturing output fell 0.2 percent quarter-on-quarter. Meanwhile, the overall industry output fell 0.1 percent quarter-on-quarter in the second quarter.

There was a sharp drop in the output in the food products and beverages, falling 2.3 percent. On the contrary, output was up in the manufacture of transport equipment, which grew 1.7 percent. Also, output in the manufacture of machinery and equipment goods rose 0.5 percent, while in mining and quarrying the output grew 0.3 percent in the quarter.

Insee, in its report, stated that the industrial output, on a year-on-year basis, grew 0.4 percent in the second quarter of 2016. Meanwhile, manufacturing output expanded 0.3 percent on an annual basis in the three months to June.

Output in the manufacture of transport equipment was up 7.6 percent, whereas in mining and quarrying it grew 0.9 percent year-on-year in the second quarter. However, it contracted noticeably in the manufacture of food products and beverages. Output in the manufacture of machinery and equipment goods fell 2.4 percent year-on-year in the second quarter.