French industrial production falls unexpectedly in October

French industrial production sharnk unexpectedly in October, weighed down by declining output in the non-core sectors.

Total industrial output in the euro area´s second largest economy dropped 0.2% month-on-month in October (consensus: 0.6%), according to INSEE, as production in non-core sectors such as food and beverages fell 2.3% month-on-month and that of chemicals and basic materials also weakened, by 3.0% and 3.6%, respectively.

However, production in the core manufacturing and construction sectors, which account for the bulk of capital expenditures, fared better, Claus Vistesen, chief Eurozone economist at Pantheon Macroeconomics explained.

Output of machinery and equipments goods rose 2.2% on the month and that of construction by another 2.1%.

Consumer durables output was especially weak, rebounding by just 0.9% over the month after crashing by 16.8% in the previous month, Vistesen said, although he expected the November data would show an improvement.

Vistesen was confident the tally for industrial production in the fourth quarter would reveal a slight recovery and emphasised how capex figures year-to-date had been stronger than implied by the monthly numbers on industrial output.