France’s industrial production rose to 0.5% monthly in October
According to the INSEE National Statistics Office, France’s industrial production rose to 0.5% in October 2015 against an unchanged level in September. The country’s manufacturing output declined 0.5%, whereas construction grew by 0.5% in October.
With the decrease in output, the iShares MSCI France (EWQ) and the Vanguard FTSE Developed Markets ETF (VEA) have fallen 0.81% and 0.22%, respectively, as of December 9, 2015. EWQ has lost 2.3% in the past year. Alstom (ALSMY) and Sanofi (SNY) have declined 0.97% and 1.2%, respectively, as of December 9.
Industrial production rose 2.3% in October from a year ago
In October, output surged in mining, quarrying, energy, and water supply by 5.1%. As a result, France’s industrial production rose 2.3% year-over-year (or YoY) in October 2015 as compared to 0.7% in September 2015.
Also, manufacturing output increased 1.7% from a year ago. Over the past year, Alcatel-Lucent (ALU) and Sequans Communications (SQNS) have increased 12.5% and 44.0%, respectively, as of December 2015. Energy stocks CGG (CGG) and Total (TOT) have fallen 67.7% and 8.9%, respectively, as of December 9 for the same period.
Compared to a year ago, the manufacture of transport equipment and electrical and electronic equipment rose by 3.8% and 2.6%, respectively. A significant increase was seen in the production of coke and refined petroleum products by 3.0% in October. Due to a cold spell in October, output jumped for electricity, gas, and steam.
Though there’s been a sharp rebound in refining and mining activities, overall production growth has been negligible in France. With export orders declining, growth may remain modest. However, the extended stimulus by the European Central Bank may rejuvenate the stagnated French economy to achieve its growth target this year. For more information, read The ECB Cut Interest Rates to Lift Inflation in the Eurozone.
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