France's industrial production growth exceeded expectations in July

According to Bloomberg News, due to the global economic recovery that prompted companies to restart investment, France’s industrial production increased in July.

On September 10, 2010, according to data released by the French National Bureau of Statistics, industrial production in France rose by 0.9% in July and 1.7% in June. The median estimate of 13 economists surveyed by Bloomberg had been 0.7%. Compared with the same period in 2009, France’s industrial production rose by 5.5% in July.

Statistics also show that in addition to the utilities and mining industry, France’s manufacturing output in July increased by 1.4% from the previous month and increased by 5.5% from the same period last year. Manufacturing output in June fell by 1.2% from the previous month.

In the second quarter of 2010, French industrial investment grew for the first time in two years, boosting GDP growth by 0.6%. Although French companies may continue to invest to increase their production capacity, France’s economic growth rate may slow down due to the government’s implementation of fiscal austerity measures and the cooling of the global economy.

Pierre-Olivier Beffy, chief economist at BNP Paribas Exane Co., Ltd., said that the change in the investment cycle has been very smooth and the company is keen and committed to expanding production capacity.