Source:Insee

12 JANUARY 2012

Industrial output increased +1.1.% in November month-on-month and manufacturing +1.3% from the previous month linear trends lifted by Durable Consumer Goods +4.3% rebound from negative territory, the component first surge since September. Output of Capital Goods stayed sustained and climbed +2% allowing for Intermediate Goods momentum to turn positive +1.2%. The production of Non Durable Consumer Goods rose +0.8%, the first pick-up since July.

Best of class transport equipment moved down to +1.3% (from +2.7%) pressed by the automobile industry lower production index, +1.9% from +4.7%, due to higher than long-term average stock levels in a slow moving market and ever increasing foreign cars market shares on the domestic market. Other transport equipment (mainly aerospace-railway-boats-trains-cycles and motorcycles) by contrast maintained steady although modest momentum, +0.7% due to very low inventory levels although household names order books are expected to push up activities substantially within the next quarter.

Output of electric-electronic equipment-IT-machinery  rose twofold to +2% thanks to machinery and equipment +2.4% rebound (from -0.7%), along with electric equipment +1.7% (from +0.1%) while IT products-electric and optical equipment shrank by half to +1.6%.

Intermediate Goods textile-clothing-leather and footwear surged +1.2% (from -2.2%) ahead of the Christmas season, followed by chemical products +1.7% (from -2.1%), rubber-plastic and non metallic minerals +1.3% (from +1%) and metal-metallic products +0.9% rise (from -1.2%). In addition, the wood-paper-printing output index rose +2.7% (from -3.6%) and other manufactured products +2.2% (from +1.7%).
 
Non Durable pharmaceutical products production index inched up to +0.1% (from -0.2%) although stock levels stayed below the long-term average as order books (domestic and export) remained in negative territory since no epidemic flue, unlike previous periods, called for massive orders thus far. The food and agriculture production index turned positive to +0.5% (from -0.8%) but stayed modest due to food price inflation impact on consumer demand.

In one year, core output was halved to +0.9% although manufacturing rose +2.2%. The production of Capital Goods increased +6.4% boosted by other transport equipment  +17.9% leap,  a record high increase since May 2010. Transport equipment production index rose +4.9% while the automobile industry production index dipped -3.9%, the third consecutive annual contraction, due to a number of Days Not Worked (DNW) implementation for labor hoarding measures.

Durable Consumer Goods output index shot up +8%, the component second strongest annual performance since last July. By contrast, textile-leather-clothing and footwear negative -6.7% output index, the six consecutive annual contraction pushed down Intermediate Goods production index was dented -0.7% by textile-clothing-leather-footwear -6.7% gap, the sixth consecutive negative performance, but is likely to pick up momentum thanks to Capital Goods demand for electric and electronic components. Despite pharmaceutical -1.2% production dip, Non Durable Goods benefited from the food and agriculture industry production index +3% rise and climbed +1.4%.