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FR: Industrial Production
| Consensus | Consensus Range | Actual | Previous | Revised | |
| Month over Month | 0.2% | 0.2% to 0.5% | 1.0% | -0.7% | -0.9% |
| Year over Year | 0.9% | -0.3% |
Highlights
Industrial output rose 1.0 percent in March from a month ago, exceeding expectations for a 0.2 percent increase, and gained 0.9 percent year on year. The February month-on-month change was revised to minus 0.9 percent from minus 0.7 percent, while the year-on-year result was unrevised at minus 0.3 percent.
Production rose in all major sectors, most likely helped by businesses increasing output due to the conflict in the Middle East as they rush to beat higher prices and supply chain constraints.
Manufacturing rose 1.2 percent from February and 1.5 percent from March of last year, while machinery and equipment was up 1.6 percent month-on-month and 1.2 percent year-on-year. Transportation equipment output expanded 2.3 percent from a month ago and was 10.6 percent higher than a year ago.
Among the major industrial groups, consumer goods reported the largest increase, gaining 3.2 percent from a month ago, followed by a 1.5 percent gain for capital goods. Consumer non-durables were up 1.1 percent, with intermediate goods gaining 0.6 percent.
French businesses at the beginning of the year were increasingly optimistic that production and orders would increase. They certainly could not have foreseen the Middle East conflict being the catalyst.
Market Consensus Before Announcement
Output seen up 0.2 percent in March on the month versus minus 0.7 percent in February.
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.