Industrial production in France and Spain was stronger than expected in July — highlighting some points of resilience in the euro-area economy as Germany continues to struggle.
(Bloomberg) — Industrial production in France and Spain was stronger than expected in July — highlighting some points of resilience in the euro-area economy as Germany continues to struggle.
Boosted by the car and pharmaceutical sectors and a rebound in utilities and energy, French output rose 0.8% on the month, having fallen in June. Economists surveyed by Bloomberg had estimated growth of just 0.1%.
Spain, meanwhile, reported a 0.2% increase — defying expectations for a decline.
The numbers provide some reassurance for European companies addressing lingering challenges from the energy crisis, weak demand in China and rising interest rates.
Germany’s economy is feeling the full brunt of those difficulties, and is anticipated to contract this year. Industrial production there fell for a third straight month in July, pulled lower by capital and consumer goods.
France, the euro area’s second-largest economy, is seen avoiding recession in 2023 after a strong second-quarter performance. But statistics agency Insee said Thursday that growth will slow markedly in the remainder of the year.
–With assistance from Joshua Robinson.
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