French Industrial Output Falls Unexpectedly

(RTTNews) - France's industrial production declined unexpectedly in December, mainly due to weaker transport equipment manufacturing, the statistical office INSEE reported Thursday.

Industrial production dropped 0.7 percent on a monthly basis, in contrast to the 0.1 percent increase in November. Production was forecast to grow 0.2 percent in December.

Similarly, manufacturing output declined 0.8 percent after a 0.5 percent rise. Data showed that manufacturing output fell back due mainly to the weakness in manufacture of transport equipment.

The manufacture of transport equipment dropped 9.9 percent and that of coke and refined petroleum products fell 0.9 percent.

On the other hand, output bounced back in the "other manufacturing industries" and in the manufacture of food products and beverages by 1.0 percent and 1.4 percent, respectively.

In mining and quarrying, energy, water supply, output went down by 0.2 percent.

"The December decline is solely due to transport equipment production and does not call into question the improving outlook for French industry," ING economist Charlotte de Montpellier said.