FX.co ★ France Industrial Output Surprisingly Falls

Industrial production in France fell by 0.3% month-on-month in August 2026, contrary to expectations for a 0.3% increase and following a 0.6% decline in July. The overall drop was chiefly driven by a 2.4% contraction in extractive industries, energy and water, which more than offset a 0.3% rise in manufacturing output.

The decline in energy was largely attributed to a pullback in electricity generation after production in July reached its highest level since December 2021. Within manufacturing, output of other industrial products rose by 1.2% after a 1.2% decrease in the previous month, while production of electrical, electronic and computer equipment increased by 0.9%, following a 1.6% decline. Coking and refining output advanced by 3.3%, although this marked a slowdown from the 8.3% surge recorded earlier.

By contrast, transport equipment manufacturing fell by 2.2% after edging down 0.1% in July, and agri-food production declined by 1.2% following a 0.4% increase. On an annual basis, industrial output rose by 0.3%, rebounding from a 0.6% contraction in July. However, over the three months to August, industrial production was still 0.1% lower than in the same period a year earlier.