French industrial output likely to have rebounded in October

France’s industrial output is expected to have rebounded most of September’s decline in October. In the prior month, output had dropped 1.1 percent after a very strong bounce of 2.4 percent in August. According to a Societe Generale research report, the industrial production is expected to have expanded 1 percent sequentially. Manufacturing is likely to have risen 0.7 percent, within which energy production is expected to have improved notably.

“Our forecast, with a constant profile, would lead to strong 1 percent qoq growth in production in 4Q (after -0.1 percent in 3Q)”, added Societe Generale.

There might be more subdued figures towards the end of 2016 if energy production slips back; however, the business surveys in the manufacturing sector appear to be strong. The October manufacturing PMI was at its highest level since March 2014, while the INSEE survey has been hovering above its long-term average, said Societe Generale.