French Industrial Output Recovers

(RTTNews) - France's industrial production rebounded at a stronger-than-expected pace in March, data from the statistical office INSEE showed Wednesday.

Industrial output grew 1.0 percent on a monthly basis in March, reversing a 0.9 percent drop in February. Production was expected to grow 0.5 percent.

Similarly, manufacturing output rebounded 1.2 percent, in contrast to a 0.1 percent drop in the prior month.

The increase was largely driven by the 6.3 percent rise in coke and refined petroleum products and a 2.3 percent rebound in transport equipment output.

Mining and quarrying, energy, water supply, production grew 0.3 percent after a 3.4 percent fall in February.

ING economist Charlotte de Montpellier said the industrial rebound looks temporary as weak demand and energy risks threaten economic growth.

Despite the increase in industrial production in March, the outlook remains gloomy for the French economy, the economist said. GDP is forecast to grow 0.6 percent this year, compared with 0.9 percent last year.