French industrial production seems to have dropped sequentially in December

French industrial production is expected to have declined in December. The bounce seen in November is likely to have revered slightly in December. According to a Societe Generale research report, the industrial output of France is expected to have dropped 1.3 percent on a sequential basis in December. Most of the softness is likely to have come from the energy component.

However, for the fourth quarter as a whole, the industrial output is likely to have come in strong, rising 0.8 percent quarter-on-quarter. There appears to be some momentum going into January, stated Societe Generale. The January manufacturing PMI rose slightly to reach a 68-month high, while the INSEE survey also came in stronger.

“The cold weather in January is likely to have boosted energy output”, added Societe Generale.