| Consensus | Actual | Previous | Revised | |
|---|---|---|---|---|
| Month over Month | 0.2% | -0.3% | -0.5% | -0.6% |
| Year over Year | 0.4% | -0.1% |
Highlights
Industrial production continued to slide in October, confounding expectations of a rebound after a weak performance in the third quarter.
Output declined by 0.3 percent over September, much worse than the consensus forecast of a 0.2 percent gain. That comes over a 0.6 percent fall in September, a bit worse than the initially reported 0.5 percent decline. On an annual basis, production rose by 0.4 percent.
However, the manufacturing sector managed to eke out a 0.1 percent rise in October, with a 2.5 percent rebound in transport equipment accounting for much of the gain (after the sector slumped 4.4 percent in September).
Away from the factory floor, mining and quarrying slipped by 4.6 percent while electricity and gas declined by 2.9 percent.
The softness will only add to the market belief that the next move in Eurozone rates will be down and could come as soon as the beginning of the second half of next year.
The latest data take the RPI to minus 26 and the RPI-P to minus 14, meaning the French economy is underperforming expectations.
Output declined by 0.3 percent over September, much worse than the consensus forecast of a 0.2 percent gain. That comes over a 0.6 percent fall in September, a bit worse than the initially reported 0.5 percent decline. On an annual basis, production rose by 0.4 percent.
However, the manufacturing sector managed to eke out a 0.1 percent rise in October, with a 2.5 percent rebound in transport equipment accounting for much of the gain (after the sector slumped 4.4 percent in September).
Away from the factory floor, mining and quarrying slipped by 4.6 percent while electricity and gas declined by 2.9 percent.
The softness will only add to the market belief that the next move in Eurozone rates will be down and could come as soon as the beginning of the second half of next year.
The latest data take the RPI to minus 26 and the RPI-P to minus 14, meaning the French economy is underperforming expectations.
Market Consensus Before Announcement
Production is seen up a monthly 0.2 percent after a 0.5 percent drop in September.
Definition
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.
Description
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.
