Source:Insee

10 AUGUST 2011


INDUSTRIAL output rescinded -1.6% and manufacturing -1.9% month-on-month in June as all groups froze due to postponements forced upon industrialists amid a turbulent context including weak US job and manufacturing data, on top of the Greek debt worries and new privatization plan. Productions thus underperformed more than usual this June compared with previous periods as July full steam momentum ahead of the August break usually offset the June pause. Output of Capital Goods turned negative and fell -2.9% followed by Intermediate Goods -2.4% Durable Goods -3.3% and Non Durable Consumer Goods -0.3%.

The Food and Agriculture Industry production index inched up +0.3% pending July jump-start while the production of energy moved down by half to +2.2% as lesser demand due to cooler weather following the previous month unusually hot temperatures pushed down coke activities.  

Electric-electronic components-IT and machinery -3.8% production dip reflected machinery -7.7% gap as well as optical-IT -3.8% output decline. Transport equipment -2.8% production fall mirrored this trend as other transport equipment (railway, aerospace, boats, cycles and motor cycles) production index decreased by 6.1% but heavy players sustained order books and increased backlogs will readjust momentum in the short-term.

The Automobile Industry production index stayed nearly unchanged or +0.1% while other industries -1.9% output drop reflected lesser demand for each durable and non durable consumer products due to stock rebuilding the previous month. On this account, the production of textile-clothing footwear fell -2.8% since May surge had provided for the Summer sales period.

The pharmaceutical industry, extensively import led, saw output stay flat . Wood-paper-cardboard and paper turned negative and fell -0.6% since lesser volume requested lesser packaging, while chemical products modest +0.2% production gain reflected as well lesser demand. Rubber-plastic-non metallic minerals declined a more substantial -3.8% since transport equipment mild performance dragged along demand for metal and metallic products to -2.2% , and despite lesser producer prices due to commodity prices decline. Other industries, including repair saw production fall  -3.1%

In one year however, overall output climbed +2.3%  and manufacturing +3.3%. The production of Capital and Intermediate Goods kept more in synch and rose respectively +3.9% and +3.2% and Durable Consumer Goods +4%. Non Durable Consumer Goods +2.5% stayed nevertheless steady despite the food price inflation impact on demand.

Best performers on the same period included the Automobile Industry +11.6%, IT-optical equipment +6.5%,the chemical industry +6.6%, the Food and Agriculture Industry's +5.3% and metal-metallic products +2%.

Other groups reflected an undeniable slow down but succeeded in staying abreast of a potential negative trend: the production of electric-electronic equipment rose +4.3% or half the previous month yearly performance. Machinery and equipment moved down by two percentage points to +5.7% while transport equipment +4.9% benefited from the auto industry solid momentum. Rubber-plastic-non metallic minerals output index slipped to +5.3%. Other transport equipment (railway, aerospace, boats, cycles and motor cycles) turned negative and slid -2.5% followed by  textile-clothing and footwear to -2.4%. Output of pharmaceutical products dropped -4.2%, the tenth consecutive month into the red and deteriorating. Wood-paper-cardboard and paper recorded a lesser -0.2% production drop.