Industrial Output index France & Euro area, Order Books index France & EU, Household Consumption of Manufactured Products, Industrial Producer Prices , Consumer Prices Index, Farm Products Prices index, Raw Materials prices index, Company Formations, External Trade, Turnover indices
INDUSTRIAL OUTPUT INDEX
Core output regained momentum and increased +0.3% in Q1 compared with the previous quarter as major industrial sectors maintained production above the red line, and, despite a general slow down affecting the Euro area. During the quarter and month on month, output stayed uneven. In January, production kept momentum and rose +0.5% pushed up by heavy weights rebounds: CONSUMER GOODS production rose +1.4% the AUTOMOBILE INDUSTRY +1.8% and INTERMEDIATE GOODS +1.2% The FOOD and AGRICULTURE INDUSTRY recorded another output gap -1.7%
CAPITAL GOODS production rose +0.8% as its component best of class, boats-planes-trains-motorcycles output fell -1.9% as a pause compared with the previous month hectic performance (+2.5%) CONSUMER GOODS output stayed quasi stable or +0.2% although leather and clothing production surged +2.5% book printing-reprints +2.3% and pharmaceuticals-perfumes +1%. Household equipment production increase +0.8% initiated a new production pause. Capital Goods electric-electronic components increased a strong +2.8% and similarly, Intermediate Goods electric-electronic components +2.6%.
In February, production slowed down and grew a modest +0.3% impacted by the AUTOMOBILE INDUSTRY new production pause -1.9% CAPITAL GOODS output rose +1.3% CONSUMER GOODS stayed quasi stable or +0.2% similarly to INTERMEDIATE GOODS. The FOOD and AGRICULTURE INDUSTRY output surged +0.4% Out of Capital Goods, all components production increased unlike the previous month: the boats-planes-trains-motorcycles output rebounded +1.7% mechanical equipment +1.1% and electric-electronic equipment +1.4% Intermediate Goods production by contrast strongly decreased with the exception of wood-paper-cardboard products +1.2% gain. The metal-metallic products production fell -0.3% and electric-electronic rose components +0.5% Consumer Goods leather-clothing production dipped -2.4% household equipment stayed nearly unchanged or -0.2% while pharmaceuticals-perfumes-personal care products production grew a mild +0.5% March recorded a substantial production gap, -0.8% mirroring most sectors order books: the FOOD and AGRICULTURE INDUSTRY output declined -0.6% CONSUMER GOODS -0.8% due to leather-clothing -3.3% along with household equipment -2.4% The AUTOMOBILE INDUSTRY production dipped -2.9% and, for the second consecutive month while CAPITAL GOODS output slid -1.1% reflecting the electric-electronic components index -2.7% dip due in part to the Auto Industry. The boats-trains-planes-motorcycles production index stayed quasi stable. INTERMEDIATE GOODS output followed suit, -1.7% dragged down by the mineral products -2.8% output fall, the textile industry production decline -2.6% and chemicals- plastic-rubber -2.5%. Similarly, the metals and metallic products production dipped -1.4% and electric-electronic components -0.5%. Despite this slow down, the energy output index rose +2.4% as water-gas-electricity production increased +3.3%. The CONSTRUCTION index remained unchanged.
Compared with the previous quarter, output stayed modest +0.3% as two sectors out of a total five underperformed : the Automobile Industry production index fell -0.3% and the Food and Agriculture Industry -0.5% Intermediate Goods output increased +0.5% Capital Goods +1.1% and Consumer Goods +0.5% In one year to March, overall production (excluding energy and construction) increased +1.2% impacted downwards by two heavyweights slowdown : Intermediate Goods production declined -1.4% and Consumer Goods -1.7% Out of Intermediate Goods the textile output dived -8.5% metals metallic products production slid -3.6% chemicals-plastic-rubber -1.7% and mineral products -1.9% The paper-wood-cardboard component saw production rise +2% and electric-electronic components +3.8% Regarding Consumer Goods and on the same period, the leather-clothing output index collapsed -10.7% household equipment -3.7% but due mostly to the March slow down, while the production of pharmaceuticals-perfumes-personal care products output rose +1.6% The Automobile Industry output fell -0.1% while the Food and Agriculture Industry production rose a modest +0.4% Capital Goods +6.5% production increase appeared mild compared with much stronger past performances and including its boats-trains-planes-motorcycles +12.8% production gain along with electric-electronic components +4.6% Output of mechanical equipment fell -3.3%. On the same period, the Energy production index rose +4.2% and Construction fell -0.3% In the Euro area, INDUSTRIAL OUTPUT slowed down in March as well -0.2% (-0.1% in the EU 27) compared with the previous month due to Capital Goods -1.1% dip and Durable Consumer Goods -1.5%. Non Durable Consumer Goods production also declined, -0.5% along with Intermediate Goods -0.2% FRANCE's industrial output within the Union underperformed from February initiating a downward curve similarly to most European member states.
Per industrial sector, and in the Euro area, Energy output remained the exception and rose +2.7% Per country, Ireland’s +9.1% production rebound and the Netherlands’ +2.1% accounted for the only substantial production upward trends. Other production increases included Luxembourg +1.6% (provisional) and Finland’s +0.2% similarly to Germany’s Out of east European member states, Romania’s +0.7% output increase remained the exception. On the same period, the biggest output gaps were observed by Estonia -5.3% Slovakia -4.9% Lithuania -4.7% Poland -4.1% Latvia -3.6% and the Czech Republic -3.4%. Out of the WEU 27, Denmark’s output dipped -6.1% In one year to March, overall production rose +2% in the Euro area and +1.8% in the EU 27. Out of the industrial index component, best industrial performers included Energy production +5.8% and Capital Goods +4.1% Intermediate Goods rose +1.1% while Durable Consumer Goods output fell -3.2% and Non Durable Consumer Goods -0.9%.
In the EU 27 production of Durable Consumer Goods declined -1.1% and Non Durable Consumer Goods -1% Out of the Euro area, Ireland’s +6.9% recorded the strongest output increase followed by the Netherlands +6.6% Germany +5.2% and Finland +2.5%
Best performers among east European member states included Romania’s +5.7% Poland +5.4% and Lithuania +3.9%
ORDER BOOKS INDEX
Order books picked up and increased +1.3% compared with the previous quarter outperforming the Euro area’s modest +0.2% gain although France’s index remained below member states volume indices. On the same period in the EU 27, order books fell -1.9% due to a general slow down affecting drastically most member states. In January and in France, Industrial ORDER BOOKS increased +5.1% compared with the previous month pushed up by Investment goods +5% rebound (auto industry, mechanical equipments, electric and electronic equipments), Durable Consumer Goods +2.4% gain and Intermediate goods +2.2% Non durable Consumer goods order books only rose +0.6%. Out of Investment Goods , electric-electronic equipment order books jumped +14.5% Auto Industry order books rose +3.8% and mechanical equipments +4.6% Intermediate Goods electric and electronic components order books increased +4.2% and chemical products +2.2% Durable Consumer Goods household equipment saw order books rise +1.8% while pharmaceuticals-perfumes and personal care products order books remained unchanged. In March, France's order books dived -6.8% and in the Euro area decreased much less drastically -1% In the EU 27 new orders fell -0.7% Excluding ships, railway and aerospace equipment, industrial new orders decreased -0.3% in the Euro area but rose + 0.9% in the EU27. Textile and textile products recorded the strongest order books decline -3.6% followed by basic metals and fabricated metal products and, machinery and equipment where new orders fell each-1.3% New orders of chemicals and chemical products declined -0.4%.
In one year, new orders in France fell -3.2% and in the Euro area -2.5% compared with -1.3% in the EU 27. On the same yearly period, new orders in the Euro area of electrical and electronic equipment stayed quasi stable or +0.1% and transport equipment +0.5%. In the EU 27 and inversely to the Euro area, new orders of textile and textile products rose +0.5% and basic metals and fabricated metal products +1.6%. New orders of chemicals and chemical products dipped -2% while machinery and equipment order books decreased -0.2% electrical and electronic equipment -0.5% and transport equipment -1.7%
Textile and textile products order books performed nearly similarly in each the Euro area and the EU 27, declining respectively -14.5% and -13.6% Machinery and equipment order books in the EU 27 declined -1.9% and over performed the Euro area’s -4.6% dip. New orders of basic metals and fabricated metal products fell each -2.7% while electric-electronic equipment saw orders drop -4.7% in the Euro area and -5.1% in the EU 27. On the same period, best performers involved Bulgaria +20.8% Slovakia +9.3% Lithuania +8.6% and Spain +8.5%
HOUSEHOLD CONSUMPTION OF MANUFACTURED PRODUCTS
Sales of manufactured products stayed sustained and grew +1% in Q1 compared with the previous quarter despite financial uncertainties brought about by inflationary prices observed worldwide and affecting daily basic needs. Per category, household consumption proved uneven as each car sales and household equipment recorded a roller coaster pattern throughout the quarter. In January, sales of durable goods dipped -3.9% pushed down by car sales diving -8.7% Purchases of household equipment gained a modest +0.8% but sales of textile-leather products stayed on the increase and rose +2.3% Sales out of the commerce sector remained quasi stable or +0.2% and sales of other manufactured products declined -0.5%. The following month, Durable goods rebounded with car sales increasing +7.5% Purchases of household equipment fell -0.1% and sales of textile-leather products remained on the increase +1% for the second consecutive month. Sales out of the commerce sector remained quasi stable or +0.2% and sales of other manufactured products declined -0.2% In March, household consumption slowed down as sales of manufactured products dipped -1.7% due to sales out of the Commerce sector declining -2.3% and, Durable Goods -1.1% Sales of textile-leather plunged -7.9% and car sales fell -1.5% and sales of household equipment stayed on a downward trend -0.7% similarly to other manufactured products -0.5%
Year-on-year however, household consumption grew steadily, +1.2% impacted by sales of Durables goods +8% gain as car sales increased +8.7% and household equipment +7.9% Sales of textile-leather fell -6.9% while sales of other manufactured products remained stable or +0.1%
PRODUCER PRICES INDEX
Industrial producer prices (excluding construction) increased a steep +1.4% in Q1 compared with the previous quarter but remained below the Euro area’s +1.7% gain and the EU 27 +2.2%. As France’s producer prices had soared in the last quarter of the previous year, the competitive edge that had been maintained for nine consecutive month -- France’s prices only ranked second to Finland-- was only regained in February. That month, France’s producer prices rose +0.6% and re-aligned with the Euro area’s impacted by energy prices +1% increase along with Intermediate Goods +0.8%. Capital Goods producer prices grew a slight +0.3% similarly to Consumer Durable Goods and Non Durable Goods. Out of the Euro area, the strongest producer prices involved Belgium +1.5% Greece +1.2% and Slovenia +1.4% while Slovakia +2.5% accounted for the strongest price hike out of the EU 27. In March, France’s producer prices gained +0.5% while the Euro area’s increased a steep +0.7%. Excluding construction and energy , producer prices grew +0.3%. The highest increases involved energy prices +1.8% and Intermediate Goods +0.4%. Capital Goods producer prices stayed unchanged or +0.1% nearly similarly to Durable Consumer Goods +0.2% while Non Durable Consumer Goods saw producer prices gain +0.3%
In the Euro area, Greece recorded the highest producer prices increase +1.1% followed by Belgium and Portugal +0.9% each. In the EU 27, Bulgaria +2.7% accounted for the steepest increase.
In one year to the end of the quarter , and in the Euro area, energy producer prices jumped +12.7% (+15.2% in the EU 27) and recorded the steepest increase. Germany’s +4.2% producer prices recorded the lowest increase and took first place over Finland’s +4.7% France ranked third with prices rising +5.2% Non durable consumer goods prices rose +5% and Intermediate goods +4.2% In the Euro area, the highest increases involved Greece +10.9% Belgium +9.6% and the Netherlands, +8.9%.
From the EU 27, prices skyrocketed +17.6% in Lithuania, in Bulgaria +15.4% in Romania +14.5% in Denmark +14.1% and in the UK 9.7%
CONSUMER PRICES INDEX
Consumer price jumped +0.8% compared with the previous quarter impacted by energy prices, food and manufactured products, nearly reaching a record high of +0.9% in January 1987. In February however, prices had stayed stable compared with the beginning of the quarter, offset by some components with the exception of food and agriculture industry products prices (excluding dairy products, meat and exotic fruit) In March, the index increased the steepest +0.5% including DOM TOM and +0.4% Metropole only, impacted again by food +0.4% and manufactured products +1.2% due to clothing and shoes +6.7%
Out of the Food component, the fresh produce prices index rose +1.3% Energy prices grew +2.7% with oil products climbing +4.3% Out of services, transport and communication +1.4% gain accounted for the strongest price index increase pushed up by postal services +2.4%.
In one year, the overall index jumped +3.2% including DOM TOM (+2% for Metropole) with food, tobacco and energy recording the highest increases, respectively +5.3% +6.3% +12.7% The food component saw the fresh produce prices index increase +3.6% and excluding fresh produce +5.6% Eggs, milk and cheese prices index skyrocketed +10.8% and fruit +7.6%
Manufactured products recorded a mild +0.6% increase on the same period. Out of the energy component, oil products prices index soared +19.5%. Services saw the rent price index jump +4.8% and combustibles +38.6%
FARM PRODUCTS PRODUCER PRICES INDEX
Farm products prices stayed stable in JANUARY or +0.1% but jumped +19.2% in one year pushed up by cereals inflationary trends on global markets due to increasing consumer demand. The highest increases in twelve months were recorded by soft wheat +69.3% (+58.6% in October last year) and oil seeds +73.9% (+54.4%) while the cereals prices index rose +62.1% (+61% last October). The barley’s price index increased +57.6% (+76.7% last October).
On the same yearly period, the strongest farm producer price index cut was recorded by potatoes -31.5% (-3.4% in January compared with December of last year) as wholesale prices fell -23.7% and stayed stable in one month. By March, the index grew +0.8% and remained on the increase in one year +22.1%. Compared with the previous month, the strongest price index cuts involved barley -1.6%, wines -3.9%, bovines -3.8% veal -2.7% and eggs -8.2% On the same period, the wholesale farm products prices index saw fruit prices decline -1.5% due to strawberries -20.3% unlike vegetables +11.5% impacted by tomatoes +22.5%. The meat price index gained +3.7% as the prices index for pork and sheep grew respectively +9.1% and +11.8% In one year, and out of farm products prices, the strongest price index increases were recorded by vegetable products +32.8% with oil seeds price index skyrocketing +107.5% and soft wheat +80.7% The potatoes price index dipped -36%. The food and vegetables price index fell -0.4% due to vegetables -4.2% while the fruit index rose +5.3% Out of animal products, the milk price index gained +36.7% eggs +11.2% chicken +20.5% and turkey +31% The wholesale prices index rose +2.9% impacted by meats +10.2% fruits +4.8% eggs and dairy +12.9% with butter prices index increasing +21.2%. The most substantial index component price cut was observed by the vegetables price index -7.3% decline due to potatoes -22.6% and tomatoes -16%
IMPORTED RAW MATERIALS PRICES INDEX
Raw materials prices imported in FRANCE jumped +6.9% in Euro and +11.7% in currency compared with the previous quarter. Month on month however, the index recorded steeper increases and from the beginning of the quarter: expressed in currency, the overall index rose +5.8% in January compared with a tamer +3.9% in Euro due to a weak exchange rate rendering cost higher in dollar terms. That same month, crude oil prices per barrel remained quasi stable averaging USD 92.1 and Euros 62.1.
The highest price increase involved iron ore +65% in currency and +63% in Euro. In February, the overall index increased +7.4% in Euro rebounding from the previous month downward trend impacted upwards by the foodstuff prices index +11.4% gain while mineral products prices rose a modest +6.4% by comparison. Brent crude oil prices rose +3% and heating oil +4.4%
Out of the foodstuff component, the tropical food price index rose +13.6% cereals +6.7% and sugar +12.4% Expressed in currency, prices mirrored these trends including Brent and heating oil prices. Similarly and as regards industrial products, the strongest increase was recorded by precious metals +11.3% gain expressed each in Euro and in currency, while the strongest price cut involved coniferous trees sawn timbers -8.6% in Euro and -8.4% in currency. In March, the overall index declined -1.8% in Euro rescinding from the previous month as each industrial and food products prices declined respectively -0.9% and -3.9% pushed down by most products prices downward trend due to a strong Euro. Crude oil per barrel increased +3.4% and heating oil +8% while in currency, prices rose nearly by half, respectively +8.7% and +13.4% In Euro and out of the Food products category, tropical food products fell -3.6% cereals -2.3% and sugar -6.8% Industrial products prices followed a similar downward trend: natural textile fibers prices fell -0.2% natural rubber -5.3% leather -0.8% and coniferous trees sawn timbers -6.1%. Minerals recorded the only price increase out of that category +7.3% while precious metals prices stayed quasi stable or +0.2% On the same period and in currency, prices performed inversely: food prices rose +0.5% with cereals prices increasing +2.9% and tropical food +1.6%. Sugar prices fell -1.9% Overall, industrial products prices rose +4.3% impacted by natural textile fibers prices +4.7% gain, leather +4.3% although natural rubber -1.4% price cut and coniferous trees sawn timbers -1.2% offset that category overall. Minerals prices rose +5.4% similarly to precious metals. In one year to the end of the quarter and in Euro, imported raw material prices rose +8% but soared +26% in currency with oil seeds prices skyrocketing respectively +86% and +113% Crude oil per barrel rose +42.5% in Euro and +67% in currency while heating oil prices jumped +78.6% in currency and +52.4% in Euro.
Out of the Euro index, food products prices soared +49% tropical food products +20.1% and cereals +21.8% while sugar by comparison only rose +5.9% Industrial products overall saw prices rise +3.6% due to two major price declines -- leather -26.2% and coniferous trees sawn timbers -23.6% Minerals prices fell -2.7% while precious metals prices increased +29.4% In currency and due to a weak dollar, precious metals prices jumped +58% and minerals +14.3%. Industrial products prices rose +13% as natural rubber prices increased +15.4% natural textile fibbers +29.1% while leather prices fell -13.5% and coniferous trees sawn timbers -10.4% Food products recorded by comparison alarming inflationary trends soaring overall +72% with each tropical food products and cereals prices increasing twofold compared with Euro prices. Sugar prices jumped +24.2%
COMPANY FORMATIONS
New company registrations increased +8.7% (in gross figures) compared with the previous quarter impacted by services to companies, commerce and construction. The quarter nevertheless started in a downward trend as company creations remained unchanged although negatively -0.1% in January: 28 885 businesses were created compared with the previous month, but the strongest company formations involved Services to Individuals +7.6% Construction and Intermediate Goods +4.7% each. The transport sector recorded a milder company formations rate +2.9% and Education-Health-Social Services new businesses rose a modest +0.3% By contrast, Capital Goods new companies dived -16.8% Services to Companies decreased -5.2% Consumer Goods -2.3% Real Estate -1.8% and Commerce -1.1% The Food and Agriculture Industry slowed down anew -0.9% February saw company formations surge: creations rebounded +2.6% to 29 595 new businesses and a cumulative 330 703 new companies (in gross figures) were created in one year. The strongest company creations were recorded by Capital Goods +14.6% , and Intermediate Goods +8.9% . The Food and Agriculture Industry new companies rebounded +6.6% Commerce +5% and Real Estate +4.2% Out of the Services to Individual group where new formations rose a modest +0.6% as a pause due to hectic creations in January, formations of Hotels, cafés and restaurants jumped +12.8% The Education-Health-Social Services sector saw new businesses increase +2.7% The Services to companies sector did not perform as well and new entities fell -2.1% similarly to Construction while Transports recorded -5.8% declines. The Consumer Goods sector new companies remained stable.
In March, Company creations dipped -2.4% compared with the previous month to 27 780 new businesses and to a cumulative 329 097 formations (in gross figures) in one year, due to a mechanical downward trend as new company categories impacted overall results negatively in addition to revised figures for each January and February. The Food and Agriculture industry new businesses dived -26.1% Capital Goods -9.2% and Services to Individuals -8.3% with hotels-cafés and restaurants formations declining -6.7% Intermediate Goods new businesses fell -1%, Construction -6% and Commerce -4% . Real Estate recorded the smallest company creations decline -0.9% while Consumer Goods +3.4% and Education-Health-Social Services +3.1% observed the only sectorial formation increases. In one year to March, four sectors recorded the largest company formations (in gross figures): Commerce saw a cumulative 79 992 formations, Services to Companies 70 472 Construction 56 791 and Services to Individuals 44 371 new businesses.
EXTERNAL TRADE
The trade gap widened to Euro -11bn in Q1/08 but exports rebounded +4.2% according to the Department of Economic and Statistical Studies. Exports out of the food and agriculture sector increased +7% pushed up by strong sales of agricultural products +8.8% Exports of the food and agriculture industry products rose +6.1% Consumer Goods products +4.4% Capital Goods +5.6%, and Intermediate Goods +2.3% The Automobile Industry recorded a substantial export increase, +1.8% while exports of energy products jumped +23.7% on the same period allowing to save Euro 250mn on the energy bill (extra cost of 2.2bn the previous quarter) totaling nevertheless 13.9bn Euros. Regarding imports, the strongest increases were observed by energy products +7.4%, and the food and agriculture products +6.1% Per region, exports to the EU surged +5.1% due to sales to Germany +7.4% (lead export partner) and Belgium +7.1% unlike Spain where exports fell -0.7% as well as to Ireland -0.5% Exports to the Middle and Near East jumped +18.5% due to sales of Airbus aircrafts as well as refined petroleum products (for engines). Sales to Asia rose +4.1% and to Africa +3.2%% Imports grew the fastest from the EU +3.8% with the exception of the UK -1.4% and rose substantially from Africa +11.4% due to energy imports. Imports from Asia increased +1.8% and remained stable from the USA +0.4% Export Turnover indices rebounded compared with the previous quarter and all industrial sectors recorded substantial increases: the Consumer Goods turnover index rose +5.4%, Capital Goods +4.9%, the Food and Agriculture Industry +3.6%, the Automobile Industry +2.4% and Intermediate Goods +1.6%
Local turnover indices picked up significantly and best performers included the automobile industry +2.6% gain, intermediate goods +2.1%, the food and agriculture industry +1.9%, and capital goods +1.6% The Consumer goods group turnover index only rose +0.6%
