French industrial output dived unexpectedly sharply in a heatwave-hit August, the statistics office INSEE said today in a report signalling that only the services sector can save the nation from recession.
Reflecting similarly gloomy data from the other euro zone economic giant, Germany, INSEE reported that French industrial production fell a hefty 0.9 per cent last month versus July.
August was the month when record more caused havoc in France, killing thousands of people and millions of chickens as well as slowing the pace of life even further than normal for a peak summer holiday month.
The data leaves France dependent on its more robust service sector to lift it clear of recession this year, and economists say sluggish industrial activity could dampen a recovery the government needs to reduce a swollen deficit and unemployment.
Yesterday, Germany, which is already in technical recession, reported its industrial production fell 2.5 per cent month-on-month in August, far more than expected. Its wider economy shrank in the first two quarters of this year.
The outlook for France is not much better. INSEE, changing its readout for July to flat from negative, said overall industrial production in August was down 1.2 per cent compared with a year earlier - boding badly for third quarter growth.