French industrial production slips for a second straight month

Data released by statistical office Insee on Wednesday showed that French industrial production decreased for the second straight month in June. France industrial output fell 0.8 percent m/m in June compared to a 0.5 percent drop in May. This was the biggest decline in four months and came in contrast to a 0.1 percent expected increase.

A shut down in several refineries in June because of a strike was a main drag. The refining sector saw a 12.4 percent drop in June following a 21 percent decrease the previous month, as strikes at Total's refineries disrupted production.

Manufacturing output decreased 1.2 percent in June, reversing a 0.1 percent growth in May, and confounding expectations for a 0.2 percent rise. Construction output dropped 0.2 percent versus May's 0.6 percent increase.

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. On a quarter-on-quarter basis in Q2, manufacturing output fell 0.2 percent, while the overall industry output fell 0.1 percent.

"Very volatile figures. Recent development has been weak, indicating that the French economy is still struggling," said DNB Markets in a report.