French industrial production seems to have improved in August

Industrial production in France is expected to have recovered in August. A sound INSEE manufacturing survey figure in August indicates towards a reasonable output growth in August. The energy component is expected to stimulate the total output figure. Following three months of declines, which is partially linked  to strikes and blockades in May and June, the energy component is expected to have grown around 3 percent sequentially in August, said Societe Generale in a research note. Manufacturing is also expected to have rebounded in August by about 1 percent month-on-month.

Overall, industrial production is likely to have rebounded 1.2 percent sequentially in August, according to Societe Generale. There is one supplementary working day in August 2016 and might weigh on the working day adjusted measure of industrial production. Admittedly, there is likelihood that factories remained closed as usual during the beginning of the month.

With a constant profile, it might lead to a drop in output of about -0.5 percent quarter-on-quarter in the third quarter. But healthy surveys in the manufacturing sector imply that the September prints might indicate additional rises in production, stated Societe Generale.