Industrial production recovered well in November. Following a marginally shallower revised 2.5 percent monthly fall in October, output jumped a much steeper than expected 2.0 percent, its strongest increase since January 2021. Annual growth improved from minus 2.7 percent to 0.7 percent but production was still a sizeable 3.0 percent below its pre-pandemic level in February 2020.

Manufacturing was up a larger 2.4 percent versus mid-quarter when it nosedived 2.1 percent. Rebounds were seen in most areas, notably coke and refined petroleum products (90.6 percent) after a strike-hit November, machinery and equipment (5.3 percent) and other manufacturing (2.2 percent). Elsewhere, mining and quarrying, energy, water supply and waste management (minus 0.6 percent) contracted again as did construction (minus 1.2 percent).

Despite November's partial recovery, average industrial production in the first two months of the quarter was still 1.4 percent below its mean level in the previous period. Absent any revisions, December will need a monthly rise of more than 3.1 percent if the sector is to add to quarterly GDP growth. As such, today's update leaves the economy on course for a weak end to 2022. It also keeps the French ECDI (minus 15) below zero but lifts the ECDI-P (5) just back into positive surprise territory.

Production is seen rising 0.8 percent on the month after a 2.6 percent slump in October.

Industrial production measures the physical output of the nation's factories, mines and utilities. Manufacturing is seen as the best guide to underlying developments as some sectors can be very volatile and cause misleadingly large short-term swings in total industrial production.

Investors want to keep their finger on the pulse of the economy because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers more subdued growth that won't lead to inflationary pressures. By tracking economic data such as industrial production, investors will know what the economic backdrop is for these markets and their portfolios. Like the PPI and the orders data, construction is excluded from the data. This report has a big influence on market behavior. In any given month, one can see whether capital goods or consumer goods are growing more rapidly. Are manufacturers still producing construction supplies and other materials? This detailed report shows which sectors of the economy are growing and which are not.