In a positive development for the French economy, the manufacturing output experienced a recovery in April 2023, with a notable increase of 0.7% compared to the previous month. This rebound in production was not limited to the manufacturing industry alone but also extended to the entire industrial sector, which saw a rise of 0.8% following a decline of 1.1%.
The latest data, released by the French National Institute of Statistics and Economic Studies (INSEE), indicates a promising trend in the country’s manufacturing landscape. The positive growth in output reflects the resilience and adaptability of the manufacturing sector, despite the challenges posed by the evolving economic conditions.
Among the various industries, mining and quarrying, energy, and water supply witnessed a significant surge of 1.8% in output compared to the previous month’s decline of 1.2%. The manufacture of transport equipment also contributed to the overall recovery, recording a growth of 2.0%. Notably, the manufacture of “other transport equipment” experienced a substantial increase of 4.7%. However, the manufacture of motor vehicles, trailers, and semi-trailers experienced a slight setback with a decline of 1.8% following a previous increase of 0.8%.
The manufacturing industry also observed positive growth of 1.4% in the manufacture of machinery and equipment goods and a modest increase of 0.3% in other manufacturing sectors. The manufacture of coke and refined petroleum experienced a significant rebound of 23.6% following a substantial decline of 45.2% in the previous month, which can be attributed to reduced strikes in refineries compared to March. On the other hand, the manufacture of food products and beverages experienced a slight decline of 0.3% after a previous decrease of 0.4%.
Looking at the broader picture, the manufacturing output over the past three months (February to April 2023) showed a promising growth rate of 1.6% compared to the same period a year ago. The entire industrial sector also recorded a moderate increase of 0.7% during the same period.
The manufacturing of transport equipment emerged as a strong performer, exhibiting a remarkable growth of 18.1%. Within this category, the manufacture of motor vehicles, trailers, and semi-trailers stood out with a substantial increase of 28.7%, indicating improved conditions compared to the previous year’s supply chain disruptions. Additionally, the manufacture of machinery and equipment goods demonstrated positive growth of 5.0%. However, some energy-intensive industries faced challenges, with mining and quarrying, energy, and water supply experiencing a decline of 3.9%. Other manufacturing industries and the manufacture of food products and beverages also reported negative growth rates of 1.2% and 2.1% respectively. Notably, the manufacture of coke and refined petroleum witnessed a significant decline of 10.5%.
The recent recovery in manufacturing output is particularly noteworthy considering the rising production costs faced by energy-intensive industries due to increased electricity and gas prices. These factors may have a potential impact on output in the future.
The INSEE also confirmed that the previously reported data for the manufacturing index between February and March 2023 remained unchanged, with a decline of 1.1%. This figure applies to both the manufacturing industry and the overall industrial sector.
The positive trajectory of the manufacturing sector and the recovery in output signify encouraging signs for the French economy. The continued focus on enhancing industrial resilience and adaptability is crucial for sustaining this growth and navigating the evolving economic landscape.