French industrial production rebounded markedly in April, led by a rise in production of cars, electrical equipment and chemicals.
The latest report from the statistical office INSEE showed that production in French industries grew 1.4% month-on-month in April, recovering from a revised fall of 1% in March. Economists had expected a monthly increase of 0.3%.
Similarly, manufacturing output rose 1.7% month-on-month, reversing a 1.6% decline in the prior month. Production grew more than the 0.4% expected by economists.
Energy production and construction output climbed 0.5% each from the previous month. Production of automobile industry recorded a monthly growth of 3.8%.
Commenting on the latest data, economist at BNP Paribas Economic Research Mathieu Kaiser said, "The rebound seen in April could well be a very temporary upward adjustment in an otherwise long-term downward moderation in activity." According to the economist, this would be consistent with a particularly adverse and uncertain economic environment, which is clearly mirrored by household demand freezing since the start of the year and more recently, slowing exports.
French industrial production has been on a decelerating trend since December. On a three-month average, the year-on-year rate of growth in industrial production decreased gradually to 2.1% in April, after peaking at 2.5% in December.
Further, Kaiser said, "This trend is likely to go on, and even to become more pronounced, as all confidence indicators and their leading components have deteriorated recently, in line with high adversity and uncertainty in the economic and financial environment."
Adding worries to rising inflationary pressures, industrial producer prices rose 5.4% year-on-year in April. On a monthly basis, prices were up 0.7%. Excluding energy and agri food prices, the production index increased 0.3% month-on-month. Over the prior twelve months, the growth rate was 1.8%.
In France, the consumer price annual inflation eased slightly to 3% in April from 3.2% in March due to fall in prices of medical products and other manufacturing products.
According to INSEE, the French economy expanded at a faster-than-expected 0.6% quarter-on-quarter in the first three months of 2008. The growth rate rose from 0.3% in the final quarter of 2007.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.