French industrial output growth likely rebounded in July on improved energy component

France’s industrial production is expected to have improved in July. A sound INSEE manufacturing survey figure of 103 for July, which is above the long-term average of 100, indicates towards a reasonably production growth for the month, noted Societe Generale in a research report. Energy component is expected to have stimulated the total output figure.

Following two months of declines, partially because of blockages and strikes in May and June, the energy component is expected to have recovered by around 3 percent month-on-month in July, added Societe Generale. In all, industrial output is likely to have grown 0.7 percent in sequential terms.

“With a constant profile, this would lead to flat qoq growth in 3Q16 (after a very healthy output in April), but we expect reasonable output in August too, which would swell the quarterly figure”, stated Societe Generale.