French Industrial Production Unexpectedly Slips Into Contraction

(RTTNews) - France's industrial production fell back into contraction in January, contrary to economist's forecast for a marked increase, latest data revealed Monday.

Industrial production edged down 0.1 percent year-on-year in January, reversing increases of 0.3 percent and 1.5 percent logged in December and November respectively, statistical office Insee said. Economists were looking for 1.3 percent expansion for January.

Sequentially, industrial production decreased 0.2 percent in the beginning of the year, after falling 0.6 percent in December. Expectations were for a 0.5 percent gain.

Insee further noted that manufacturing production grew at a faster annual rate of 1.4 percent in January than 0.5 percent in December. The annual growth rate was forecast to be 1.5 percent.

Month-on-month, factory output moved up 0.7 percent, compared to expectations for a 0.4 percent gain. In December, factory production was flat.