Industrial Production Jumps in France, But Will Take Time to Reach Pre-Covid Levels
The industrial production, as well as manufacturing production were suffering last year all over the world, but in particular in Europe. But, the crash came during the coronavirus lock-down this year, as production dived hard in the previous months. But, it is making a swift reversal now, as May’s report from France is showing.
- May industrial production MoM +19.6% vs +15.4% expected
- April industrial production MoM -20.1%; revised to -20.6%
- Industrial production YoY -23.4% vs -24.0% expected
- Prior industrial production Yo -34.2%; revised to -35.0%
- May Manufacturing production MoM +22.0% vs +22.8% expected
- Prior manufacturing production MoM -21.9%; revised to -22.3%
- Manufacturing production YoY -25.2% vs -23.6% expected
- April manufacturing production -37.1%; revised to -37.9%
All this tells us is that factory activity bottomed out in April and saw a strong rebound in May amid the easing of lockdown restrictions. That’s about all we can extrapolate here as conditions are still extremely subdued as seen with the annual estimates.
There’s also not much to gauge the strength of the recovery as we will have to see how much of this is due to working through order backlogs and the balance between that and new orders coming in i.e. demand conditions. I reckon we’ll only get a better sense of the situation and the
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