French industrial production unexpectedly fell in December

According to the report from Insee, in December 2020, output decreased in the manufacturing industry for the first time since April 2020 (−1.7%, after +0.7% in November). In the whole industry, output decreased for the second consecutive month (−0.8%, after −0.7%). Economists had expected a 0.2% increase.

Compared to February (the last month before the first general lockdown), output remained significantly lower in the manufacturing industry (−5.7%), as well as in the whole industry (−4.9%).

In December, output slumped in the manufacture of coke and refined petroleum due to the shutdown of several refineries (−30.5% after −1.7%). It fell back in “other manufacturing” (−1.4% after +0.3%), in the manufacture of machinery and equipment goods (−3.5% after +1.2%) and in the manufacture of food products and beverages (−1.8% after +0.9%). Conversely, it increased in mining and quarrying, energy, water supply (+4.3% after −8.5%) and in the manufacture of transport equipment (+2.0% after +2.2%).

In December, output yet remained below its February level in most industrial activities. It plummeted in the manufacture of coke and refined petroleum (−32.0%). It fell sharply in the manufacture of transport equipment (−10.0%), especially in the manufacture of “other transport equipment” (−15.2%). Compared to February 2020, output also diminished in the manufacture of machinery and equipment goods (−7.8%), in “other manufacturing” (−4.4%) and in the manufacture of food products and beverages (−3.8%).