Recovery in French industrial sector surges well above expectations in January

French industrial production rose by 3.3% in January following 0.7% drop in December, heavily beating expectations for 0.5% rise and hitting the highest level since July 2020.

Strong rise offset a slump in the previous month and signal that the French economy returns to recovery mode which was disrupted in November and December.

Fresh increase was registered in almost all industrial sector, except transport equipment that includes aeronautics and car making which has been hit hard by the global aviation downturn.

The data signal that the industrial sector managed to stay afloat during the latest lockdowns on raging new wave of coronavirus and performed better than larger services sector, which was hurt more by the restrictive measures.

The French government plans to speed up economic recovery with a focus on industry in its 100 billion euros stimulus and expressed readiness to inject an additional billion into support for the sector.

Today’s upbeat figures boost optimism for further recovery, although French economic recovery lags German and Italian economies which benefit from more exposure to fast-recovering Chinese economy and depend less on industries like aeronautics.