In a welcome turn of events, French industrial output experienced a rebound in November, defying expectations and providing a glimmer of hope in the troubled eurozone industrial sector.
According to the latest data released by national statistics agency Insee on Wednesday, total industrial production in the second-largest economy of the eurozone grew by 0.5% compared to the previous month. Economists polled by The Wall Street Journal had predicted no growth, making this positive outcome even more significant. This marks the first time since the summer that output has shown growth, after several months of decline.
The growth in industrial output was primarily driven by the energy sector and capital goods, as indicated by Insee's figures. However, production of durable consumer goods experienced a decline in comparison to the previous month, with notable decreases in transportation production.
This turnaround in the French industrial landscape brings some much-needed optimism amidst the gloominess prevailing across the broader eurozone. Germany, the most influential economy in the bloc, suffered a further slump in November, surpassing expectations with a worse outcome. Factory order books also offer little hope for a major revival in the upcoming months. In fact, industrial production in the wider eurozone witnessed a 0.7% fall in October, as reported in the most recent data.