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French industrial production rises, eurozone rivals suffer falls

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By Euronews
French industrial production rises, eurozone rivals suffer falls

Industrial production in France achieved its biggest monthly rise for two years in August, in contrast with slumps in other large eurozone countries.

The country’s official statistics office said output jumped 1.6 percent, more than reversing a drop of 1.1 percent in July.

The increase was more than many economists predicted but one warned that the summer is notoriously volatile.

Greater car production and business incentives are seen as contributing factors. Companies are benefiting from a payroll tax credit scheme designed to boost competitiveness, which has significantly reduced corporate tax.

The figures are seen as indicating that growth is returning but that it remains tepid.

France’s socialist government expects the economy to grow by 1.0 percent this year, which would be the strongest performance since 2011.

In contrast industrial output in Germany, which is said to be particularly vulnerable to the Chinese slowdown, fell at the fastest rate in a year – suffering a monthly fall of 1.2 percent.

German exports plunged by the most since the depths of the financial crisis.

Italian industrial production dropped half a percent on July – more than expected. The ISTAT statistics institute reported a fall of 0.5 percent from July, whereas forecasts had predicted a drop of 0.3 percent.

Spain experienced its biggest drop since April 2013, with industrial production falling 1.4 percent in August compared