Between January 2004 and September 2006, the core industrial output index increased +3.7% despite major output gaps that affected most sectors in Q3/06. However, year on year, the index grew the fastest in 2004 gaining +3.5% due to the Automobile Industry +11.9% output index performance, Consumer Goods +1.6%, Intermediate Goods +2% and Capital Goods +3.2%.

In 2005 the overall index declined -1.2% impacted by a series of events that resulted in a major industrial slowdown with the exception of the Capital Goods sector mostly due to large Airbus orders. Nevertheless, soaring oil and gas prices affected consumer confidence on all counts and arched over uncertainties and fear linked to the May European Constitution Referendum outcome; as a direct result, corporations and businesses alike suspended hiring and investments plans, and, the November riots up to December worsened an already feeble labor market. In addition, stagnating salaries impinged on consumer demand as yearly inflation stood at 1.5%.  That same year, the Automobile Industry recorded its first production gap and collapsed -11.8% while Consumer Goods output gained a modest +0.4% The Capital Goods sector kept its upward momentum as output grew +4.2% unlike Intermediate Goods -0.9% output dip in direct relation with the auto industry slow down.

Between January 2004 and up to September 2006, the Boats-Trains-Planes-Motorcycles output index outperformed all other categories and jumped +30.6% The Mechanical Equipment production index rose an impressive +12% while to a lesser extent the Electric-Electronic Component index rose +3.6% as May and June 2006 recorded each exceptional production indices respectively +3.6% and +4.4%

In 2005, the Boats-Trains-Planes-Motorcycles  production index stayed in the lead and rose +10.1% impacting upwards each the mechanical equipment output index +4.7% and the electric-electronic equipment index +3%.  In 2006 and although production rescinded, gains remained vibrant.

Whereas the mineral products component recorded two major output gaps in 2005 (-3.6% in February and -1.2% in September), textile recorded seven production gaps that same year and as early as January. Inversely, the wood-paper-cardboard products output index succeeded in remaining in the black despite negative outputs but in lesser numbers. The chemicals-plastic -rubber products output by contrast fell in the red as output seesawed the entire year unlike the metals-metallic products production index.

By 2005 the Automobile industry production index dived for the fist time with gaps occurring seven months out of a total 12. Fierce competitors entered the French car market more aggressively with bio fuel or hybrid cars, lower prices, while at the same time, oil prices shot up to record levels.

The Consumer Goods sector performed similarly to all industrial sectors in 2004 as output rose +1.6% recording thus its best production year. The following year however, output increased a modest +0.4% and in 2006 year to date declined -0.9%.  Between 2004 and up to September 2006 out of that sector’s categories, pharmaceuticals-perfumes-personal care products performed best as output jumped +11.6% while all other components observed severe gaps: the clothing-leather production index dived -23.2%, printing-reprints declined -4.2% and to a lesser extent household equipment decreased by 1.8%.

With imported leather shoes originating increasingly from China and Vietnam as well as neighboring east European countries, leather output along with clothing recorded its worst production year in 2005 recording as many dips as in the previous year but with little rebounds in between. The home equipment output index decline initiated in 2004 occurred similarly with growing imports.