French industrial production for November exceeds expectations, while other EU countries fail to perform as well
French industrial production grew 0.5% in November, ending a three-month decline and beating economists’ forecasts that it would remain at the same level as October.
The growth was fueled by a boost in the energy sector and continued manufacturing expansion, which saw output rise 0.3%.
Other European countries, however, are not doing so well.
Germany, whose comparable data was released on Tuesday, showed its sixth consecutive monthly decline, reflecting persistent challenges faced by the euro zone’s largest economy due to high energy prices and rising interest rates.
Furthermore, a study by the German Institute for Economic Research (DIW) suggests that construction spending in the country is set to decline in 2024 for the first time since the financial crisis. The real estate sector is going through the most serious crisis in recent decades.
Stock markets rallied late last year amid expectations that global central banks would begin cutting interest rates in early 2024.
However, inflation in the Eurozone rose to 2.9% in December, reversing six months of continuous decline and creating uncertainty over when the European Central Bank might consider cutting rates.