In August 2025, the industrial landscape showed that manufacturing output dipping by 0.7 percent after a revised fall of 0.1 percent in July. Transport equipment was the hardest hit, sliding 4.5 percent, largely due to a correction in other transport equipment following June's unusual surge. Energy-linked industries also struggled, with coke and refined petroleum products dropping 4.7 percent. Food and beverages, alongside mining and utilities, registered more modest declines. Yet, there were bright spots as machinery and equipment rebounded by 1.2 percent, while other key sectors such as chemicals and pharmaceuticals held steady.

Looking over the year, the story is more positive as manufacturing output rose 1.6 percent, led by a strong 11.7 percent rise in transport equipment, showing the sector's resilience despite monthly volatility. Petroleum products and machinery also posted steady gains, though food and beverages lagged with a 2.1 percent decline.

Construction presented its own contrasts. While August saw accelerated growth at 1.2 percent, with building construction expanding impressively by 3.7 percent, civil engineering projects contracted. Year-over-year, construction remains weaker, down 2.8 percent compared with the same period in 2024, highlighting persistent structural challenges despite short-term improvements. The latest update takes the RPI to 4 and the RPI-P to 12, meaning that adjusted for prices, economic activities exceed the expectations of the French economy.

Output is seen up 0.4 percent on the month and up 1.0 percent on year.

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.