French manufacturing output fell sharply in April, with overall industrial production also losing ground, confirming recent data that the economy is slowing more rapidly than originally forecast.
French statistics office Insee said today that production in the manufacturing sector in April dropped 0.7 per cent compared with March, to give a year-on-year rise of 2.0 per cent. Overall output slipped 0.3 per cent month-on-month.
The numbers were weaker than expected for April and the March number was revised down also, so the first quarter ended on a weak note and the second quarter is beginning on a weak note, said Mr Kit Juckes, an analyst with RBS Markets.
This confirms that the problems of manufacturing industry have definitely migrated to Europe from the US in a big way.
Adding to the gloom, the French customs office said France recorded an adjusted trade deficit of euro483 million in April, the first dip into the red since December, after a surplus of euro 791 millionthe month before.
France recorded trade deficits with the world's three top economies - the United States, Japan and Germany.
The trade balance with Germany was causing particular concern, yawning to euro 793 million from a previous deficit of euro 621 million, indicating that declining demand in the euro zone's top economy was taking its toll on French industry.
Analysts said the French data would put pressure on the European Central Bank to relax its monetary policy.