French industrial production fell much more than previously expected at the start of the year, Bloomberg reports.
The drop in output adds to signs that the euro zone’s second-largest economy is struggling to regain growth after the energy crisis.
Output fell 1.1 per cent in January from the previous month, while economists surveyed by Bloomberg had expected a contraction of only 0.1 per cent.
Statistics agency Insee also revised December’s figure downward to 0.4 per cent from 1.1 per cent previously.
French Finance Minister Bruno Le Maire urged Europe to tackle its major growth problems. He also pressed the European Central Bank to ease its restrictive policy, saying the fight against inflation has been won.
However, most members of the ECB Governing Council signalled they wanted to see more progress in the fight against inflation before adjusting their stance. Economists do not expect any policy changes at this Thursday’s meeting.
Data released in France on Tuesday showed that manufacturing output was particularly weak at the start of the year, falling 1.6 per cent in January – the sharpest month-on-month drop since October 2022. Production of transport materials, including motor vehicles, fell 5.3 per cent.
