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France's Insee reported a 2.1% drop in industrial production in
May, compared with April figures, while economists polled by
Reuters on average expected a decrease of 0.5%.
Germany also recorded a steeper-than-expected 2.5% decline in
industrial output for May compared to the previous month.
Analysts had forecast a 0.2% rise.
The timing of public holidays "may have amplified reductions in
activity" over the month, as production fell in almost all major
industrial branches, INSEE said in its press release.
"Supply difficulties continued to affect automotive production
this month, as they did last month; numerous technical and
regulatory stoppages penalized production in the chemicals
sector," the agency told Reuters in an email, pointing also to
challenges in metals manufacturing and construction.
The French statistics agency said German activity and order
books remain well below long term averages which was not the
case for France, where the downturn could be regarded partly as
a one-off event.
The gradual slowing of the U.S economy, a major trading partner
for France and Germany, was another potential factor impacting
output, said ING's Head of Macro Carsten Brzeski.
He also pointed to trade tensions with China and labor
shortages.
Industrial production figures for the euro zone fell short of
analyst expectations in April, according to data published by
Eurostat. The indicator was down 0.1% on a monthly basis, while
economists consulted by Reuters expected a 0.5% rise.
(Reporting by Alban Kacher;Editing by Elaine Hardcastle)
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