| Actual | Previous | Revised | |
|---|---|---|---|
| Month over Month | -1.4% | 0.2% | 0.1% |
| Year over Year | -2.1% | 0.2% | 0.1% |
Highlights
Industrial production contracted markedly in April, down 1.4 percent from March, when it eked out a 0.1 percent gain, as the manufacturing sector produced 0.6 percent less than in March when production expanded 0.5 percent. From April of last year, production declined 2.1 percent, after a modest 0.1 percent increase in March.
Within manufacturing, transportation equipment fell 2.4 percent, just about wiping out a 2.6 percent gain in March. Output of aircraft, ships, and locomotives fell sharply, down 3.7 percent compared to a 2.2 percent gain in March.
Energy production weighed on the overall result as well, with milder temperatures helping to lower output by 6.2 percent in April. Capital and intermediate goods production fell by 1.1 and 0.3 percent respectively.
At the same time, the output of consumer durable and non-durable goods increase, which is somewhat surprising given the cautious nature of consumers at the moment.
Although the PMI reports showed an improvement in the manufacturing sector in May, French industry is off to a poor start to the second quarter. With continued volatility around US trade policy, it's unlikely that French industry will sharply ramp up production in the coming months.
Within manufacturing, transportation equipment fell 2.4 percent, just about wiping out a 2.6 percent gain in March. Output of aircraft, ships, and locomotives fell sharply, down 3.7 percent compared to a 2.2 percent gain in March.
Energy production weighed on the overall result as well, with milder temperatures helping to lower output by 6.2 percent in April. Capital and intermediate goods production fell by 1.1 and 0.3 percent respectively.
At the same time, the output of consumer durable and non-durable goods increase, which is somewhat surprising given the cautious nature of consumers at the moment.
Although the PMI reports showed an improvement in the manufacturing sector in May, French industry is off to a poor start to the second quarter. With continued volatility around US trade policy, it's unlikely that French industry will sharply ramp up production in the coming months.
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.
