French factory fall adds to eurozone growth concern

French manufacturing has had its worst quarterly drop since 2012 in the first three months of this year, underscoring a loss of momentum in the eurozone.

French factory fall adds to eurozone growth concern

French manufacturing has had its worst quarterly drop since 2012 in the first three months of this year, underscoring a loss of momentum in the eurozone.

The 1.8% slump from the fourth quarter was the first decline in more than a year and a wider measure of industrial production in Europe’s second-biggest economy fell 1.3%.

That was the largest since the third quarter of 2013.

The figures add to a general picture of weakening in the region that ECB president Mario Draghi described two weeks ago as “moderation” after a period of strong growth.

Expansion in France and the eurozone was the weakest in six quarters at the start of the year.

“The data confirm that the eurozone economy has simply slowed sharply,” said Claus Vistesen, an economist at Pantheon Macroeconomics in the UK.

“Whatever growth we had in 2017 was never going to be sustained,” he said.

Irish Central Bank governor Philip Lane said it was too early to tell whether recent data and survey evidence were showing a slowdown in the eurozone.

“But let’s see. Let’s see where we are. I think it’s too early to tell”, he told reporters.

France’s GDP weakened to 0.3% in the first quarter due to winter storms that ripped through the country, hitting factory production.

That number may now be 0.1 or 0.2 percentage point lower, Vistesen said. A second reading is set to be published at the end of this month.

Data elsewhere in euro region this week has been mixed. German production showed a 1% increase for March, though factory orders for the same month unexpectedly fell.

Bloomberg. Additional reporting Irish Examiner

more courts articles

Gary Glitter victim seeking six-figure sum in damages, court told Gary Glitter victim seeking six-figure sum in damages, court told
Man (25) in court charged with murdering his father and attempted murder of mother Man (25) in court charged with murdering his father and attempted murder of mother
Man appears in court charged with false imprisonment of woman in van Man appears in court charged with false imprisonment of woman in van

More in this section

FILE PHOTO The Competition and Consumer Protection Commission has cleared the purchase of Goodbody Stockbrokers by AIB END Goodbody Stockbrokers fined over €1.2m by Central Bank over rules breaches
Nottingham City Centre Stock Irish staff at the Body Shop wait for wages as retailer shuts stores in the Republic
Ryanair comments on Norwegian Ryanair boss O'Leary's spat with Transport Minister over Dublin Airport escalates
IE logo
Devices


UNLIMITED ACCESS TO THE IRISH EXAMINER FOR TEAMS AND ORGANISATIONS
FIND OUT MORE

The Business Hub
Newsletter

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
ie logo
Puzzles Logo

Play digital puzzles like crosswords, sudoku and a variety of word games including the popular Word Wheel

Lunchtime News
Newsletter

Keep up with the stories of the day with our lunchtime news wrap.

Sign up
Cookie Policy Privacy Policy Brand Safety FAQ Help Contact Us Terms and Conditions

© Examiner Echo Group Limited