Industrial production bounced back from minus 2.2 percent on the month in May to 0.8 percent in June. Despite this, the manufacturing sector had a mixed performance, with notable rebounds and declines across different industries.

For instance, transport equipment manufacturing rebounded by 3.4 percent, recovering from a previous decline, driven by a 3.3 percent rise in motor vehicles, trailers, and semi-trailers production. Other transport equipment also saw consistent growth of 3.4 percent. The other manufacturing industries experienced a modest recovery of 0.5 percent. The manufacture of coke and refined petroleum products surged impressively by 12.3 percent, while mining and quarrying, energy, and water supply saw steady growth of 0.7 percent. On the other hand, the manufacture of machinery and equipment goods continued to decline by 1.1 percent, and the food products and beverages sector also decreased by 0.3 percent.

Year-over-year, industrial production remained in decline in June, however, not as steep as May, climbing from a decline of minus 3.1 percent to minus 1.6 percent in June. Over the past year, the manufacture of transport equipment and machinery and equipment goods significantly dropped by 6.3 percent and 5.1 percent, respectively. Food products and beverages had a slight decrease of 0.4 percent. In contrast, the coke and refined petroleum products sector grew by 2.7 percent, with a slight 0.2 percent increase in other manufacturing industries. Mining, quarrying, energy, and water supply remained stable.

Today's report reduces the French RPI to minus 11 and the RPI-P to minus 4, affected mainly by the decline in year-over-year industrial output production, despite the slightly positive data from the previous month.

Production is expected to rise 0.9 percent on the month, only denting May's hefty 2.1 percent slump.

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.