Industrial Output index, Passenger Car registrations, Turnover indices local & exports, Consumer prices index, Company Creations, The Labor Market Metropole, External Trade in value, Producer Prices index
INDUSTRIAL OUTPUT INDEX
Core output fell –0.3% against the previous quarter despite its monthly roller coaster pattern as May offset April and June negative performance. In one year to June, core production recovered and rose +0.8% impacted by nearly all sectors with the
exception of the Automobile Industry.In Q2 and in April three major industrial groups production dipped: CAPITAL GOODS
-0.6% CONSUMER GOODS -0.9% and INTERMEDIATE GOODS -0.5% due to its best of class electric-electronic components production index rose +2%. The Food and Agriculture industry output index rebounded +1.1% and the Automobile Industry +0.6%.
By contrast, Consumer Goods best performer, pharmaceuticals-perfumes and personal care products fell -1.8% and leather-clothing declined -2.7% Out of Capital Goods, the boats-trains-planes-motorcycles output index fell -1.8% as a pause from a hectic March and chemicals-plastic-rubber -0.9% The Energy output index decreased -3.8% as the water-gas-electricity production -4.5% drop resulted from a general production slowdown and warmer temperatures. The combustibles and fuels production index increased +1.4%
In the Euro area that same month, Germany’s output index fell -2.3% while out of the EU 27, Latvia’s rescinded -1.5% Poland’s -2.1% and Romania’s -4.9% Lithuania’s and Bulgaria’s rose respectively +3.5% and +1.6%. In May, Industrial Output regained momentum and increased +0.4% impacted by Energy +1.9% Consumer Goods +0.4% Intermediate Goods +0.7% and the Food and Agriculture milder +0.2% rise. Production of Capital Goods stayed unchanged but the Automobile Industry’s dipped
-2.1% Core output (excluding Energy, and the Food and Agriculture Industry) remained stable or +0.1% Construction rebounded +0.7%
Out of Consumer Goods, Perfumes-Pharmaceuticals and Personal Care products saw production grow +0.8% Capital Goods Boats-Trains-Planes-Motorcycles output decreased -3.5% while electric and electronic equipment production grew +1.2% despite the Automobile industry negative performance along with the Boats-Trains category. Out of the Energy group, the combustibles and fuels production jumped +7.6% and water-gas-electricity +1.1% JUNE recorded another output gap and fell -0.5% due to Intermediate Goods -1.4% dip, the Automobile Industry -2.3% and the Food and Agriculture Industry -1.6% Capital Goods output rebounded however +0.9% impacted upwards by the planes-trainsboats- motorcycles production +2.5% and capital equipments +1.2% Construction increased +0.6% In one year, output rose +2.3% in the Euro area and +2.5% in the EU 27 France’s
increased +0.8% impacted by nearly all sectors with the exception of the Automobile Industry production diving -3.2% The Food and Agriculture Industry output rose +1%, Consumer Goods +1/7% and Intermediate Goods +1% Energy output grew +0.7% and
Construction jumped +4.5% . Industrial output fell a slight -0.1% in the Euro area but stayed stable in the EU 27 according to Eurostat figures.
NEW PASSENGER CAR REGISTRATIONS
Car registrations fell -1.6% to a quarterly average 170 358 units as both April and May recorded slow sales. In May, French car registrations fell -2.6% compared with the previous month nearly similarly to Foreign cars -3% sales dip. Renault’s sales recorded another blow and dived -11.6% unlike Peugeot and Citroen with sales increasing respectively +7.3%. Group PSA saw sales increase +4.5% In five months, total passenger car sales (French and foreign) amounted to 864 132 units down -2.4% but sales of diesel engine cars still accounted for 73.8% of market share and rose +3.4% or 637 743 units. French car sales dropped -6.5% while foreign car sales increased +2.6% On the same period, Group PSA recorded the highest car sales in volume 271 184 or -0.9% (Citroen 117 883 units or -0.3% and Peugeot 153 301 units or -1.4%). Renault’s car sales totaled 187 637 units (-13.5%)
The following month, French passenger car registrations dived -8% (117 783 units) compared with the previous month while sales of Foreign Cars grew +3.1% (98 693 units) although in lesser volume. Renault’s sales plunged -15.1% similarly to Peugeot
while Citroen sales jumped +23.1% Group PSA sales declined -1.4% Second hand car sales rose +1.3%. In one year to June, total passenger car sales (French and foreign) amounted to 1 080 608 units sliding back -2.6% but sales of diesel engine cars retained their leading market penetration share totaling 72.7% of all car registrations. On the same period, French car sales dipped -6.8% while foreign car sales increased +2.4% Second hand car sales climbed a slight +0.9% On the same period, only Citroen recorded positive car sales +3.6% (a total 146 994 units) but Group PSA in volume remained in the lead with a total 336 024 units sold or -1% Renault’s sales totaled 240 545 units (-13.8%)
TURNOVER INDICES
Turnover indices rebounded in Q2 as both local and exports recorded strong performances in all major industrial sectors. Although export indices outperformed local figures, in variances and especially in one year, local turnovers performed as
strongly as exports. Sustained demand maintained the CONSUMER GOODS local turnover index in the lead, similarly to Intermediate Goods. In Q2, the Consumer Goods local turnover index increased +1.5% compared with the previous quarter but fell -1.3% as regards exports. In one year, each local and export turnover indices rose +4.7% INTERMEDIATE GOODS local index grew +1.9% in Q2 and +1.2% as regards exports but jumped in one year +8.6% locally and grew +5.7% as regards exports. CAPITAL GOODS local turnover index rose +1.4% in Q2 and a mild +0.4% in one year compared with exports in Q2 rising +1.5% and in one year increasing a massive +16.3%. The AUTOMOBILE INDUSTRY local turnover index fell -0.7% in Q2 and -0.4% in one year
while exports in Q2 rose +1% and +4.5% in one year. The FOOD AND AGRICULTURE INDUSTRY local turnover index increased +3.2% in Q2 and +5% in one year while the export index rose +1.7% in Q2 and +5.9% in one year.
Strong performers out of all sectors included the local home equipment turnover index out of the CONSUMER GOODS GROUP +1.7% gain in Q2 and +2.9% in one year and as regards exports respectively +1% and +4.5%. Out of the INTERMEDIATE GOODS sector, the local metal transformation turnover index grew +3.7% in Q2 and +13.7% in one year and as regards exports gained a milder +1.2% in Q2. However, exports turnover jumped +9% in one year. Similarly, the export turnover index for shipyard building material -railway-aerospace increased +0.5% in Q2 but skyrocketed +31.4% in one year while the local turnover index grew +6.5% quarterly and fell -11.5% in one year.
CONSUMER PRICES INDEX
The overall Consumer Prices index rose +1.3% in Q2 compared with the previous quarter impacted by the food component +1.1% gain due to fresh produce inflationary +7.7% increase. The tobacco price index stayed stable while the manufactured products index rose +1% as clothing and shoes rose a steep +5.3%
Energy prices grew +3.8% and rent out of the services component increased +1.1%. In one year, the overall index rose +1.3% reflecting its quarterly trend: the fresh produce price index increased +4.6% impacting food upward +0.4% clothing and shoes gained +0.8% and rent +3.3% The energy prices index fell a slight -0.3% and manufactured products -0.1%
COMPANY CREATIONS
Overall company creations fell -1.1% in Q2 due to a slow down in May (-4.2%) while June recorded a strong +7.6% rebound or 27 117 new businesses compared with the previous month and +12.9% year to date to a total 303 654 new entities.
In June, the Capital Goods sector recorded the fastest growth rate +44% followed by the Intermediate Goods group +36.1%. The Consumer Goods sector saw new entities rise +14.3% and Real Estate +11.9% Services to Companies new businesses grew +9.7% Commerce +7.4% Construction +6% and Health-Social Services +5.5%
The Food and Agriculture Industry stayed upbeat with new businesses climbing +3.8% along with Services to Individuals +3.6%. Transport by contrast rescinded with new entities declining -0.2%. In one year, the Food and Agriculture industry new businesses grew the fastest +18.2% followed by Intermediate Goods +17.3% and Transport +16.5% Consumer Goods recorded the slowest growing rate +3.4%.
The LABOR MARKET
Unemployment fell -3.3% in Q2 or 1 134 000 million jobless and decreased -11.5% in one year to an estimate 1 120 000 million unemployed. Controversies surrounding labor figures remained as the number of food stamp recipients kept increasing and temporary assignments (under six months) accounted for the majority of job offers. In addition, the over 50 age group, officially exempt from a job search remain mostly unaccounted for. France’s « sick man of Europe » status stayed thus unchanged. In May, unemployment fell to 8.1% of the total working population or 2.240 000 million jobless, close to February 1991 figures (2.233 000 million) and May 2001 (2. 299 000 million).
The under 25 unemployment rate, one of the highest of the EU, stagnated for the fourth consecutive year to 21% In June the under 25 age group recorded no significant improvement as jobless figures for that category decreased to 20.9% from 21% . Similarly, the intermediate age bracket 25 to 49 unemployment rate fell to 7.2% from 7.3% The over 50 jobless rate declined to 5.2% from 5.3% Per gender, the under 25 remained the most affected by unemployment : male’s jobless rate stagnated at 19.4% of that total age group. Female’s unemployment figure stayed quasi unchanged to 23% compared with 23.2% the previous month.In one year, overall unemployment fell -11% to 8% compared with 9% in June 2006. In the Euro area and in June, overall unemployment stayed stable at 6.9% compared with May. In the EU 27 unemployment fell to 6.9% from 7% the previous month. The lowest jobless rates were recorded in the Netherlands +3.3% Denmark 3.5% Cyprus 3.9% and Ireland 4.0% while the highest rates were observed in Slovakia 10.7% and Poland 10.2%
In one year, and out of a total 27 member states, 22 recorded some labor market improvement, among which Romania where the jobless rate remained unchanged. The most noticeable improvements were recorded in Poland where unemployment fell to
10.2% from 13.9% and Sweden to 5.3% from 7.2% The strongest deteriorations were observed in Luxembourg where unemployment rose to 4.9% from 4.6% and Hungary to 7.7% from 7.3% Per age group and in June, the UNDER 25 jobless rate stood at 15.1% in the Euro area and 15.5% in the EU 27 compared with 16.3% and 17.1% a year ago.Member states with the lowest unemployment rate for that age group involved Ireland’s 5.9% the Netherlands’ 6.3% and Denmark’s 7% The highest jobless rates were recorded by Greece 24.6% (in Q1 07), and Romania 20.3% and France 21.8%. France’s overall job offers increased a mere +0.5% in Q2 and +3.2% in one year to 295 500 offers but remained dwarfed by jobless figures expressed in millions. Long term offers for assignment (over six months and expressed in gross figures) rose +1.4% in Q2 and similarly in one year to June. Short term offers (in gross figures) grew respectively +9.9% and +2.2% while occasional job offers (in gross figures) shot up +23.3% and +14.2% in one year worsening precariousness. Jobless registrations due to the end of short term assignments consequently fell -26.3% in Q2 but rose +8% in one year. The end of temporary assignments saw registrations fall -18.4% and decrease -3.7% in one year while registrations due to lay offs rescinded -15.2% in Q2 and -19.4% in one year as training programs remain compulsory for the majority of jobless in order to receive unemployment benefits and thus be excluded from jobless figures.
EXTERNAL TRADE
The European Union accounted for 65.1% of FRANCE's exports in value index, the Euro area 49.7% the OECD 15.4% (excluding EU) and the world 19.5% (excluding EU). In June, total imports stayed stable but increased +1.7% compared with the previous
quarter. In one year, imports rose +0.3%. On the same periods, Exports fell -0.7% rose +0.8% and decreased -0.6% The Food
and Agriculture Industry imports rose +0.4% in one month, increased +1.7% against the previous quarter but fell -0.6% in one year. Exports rose +0.9% in one month, and rose +1.3% in three months. In one year, exports fell -1%.
Fisheries total imports stayed stable in one month but increased +1.3% compared with the previous quarter. In one year, imports fell -3.3%. On the same periods, Exports rose +2% and +1.6% and increased +11.3% in one year. Consumer Goods imports only grew +0.3% in one month but fell -0.3% compared ith the previous quarter. In one year, imports fell -0.6% Exports dipped -1.3% in one month and further -2.6% in three month. In one year, they rose +1.7% The Automobile Industry total imports increased a mild +0.3% in one month and +0.7% in three months. In one year, imports fell -1%. On the same periods, Exports decreased -0.8% and similarly in three months. In one year exports dipped -2.3% Capital Goods imports stayed stable or +0.1% in one month but fell -0.3% in three months. In one year imports increased +0.8% Total exports declined -1.3% in one month and rebounded +1.1% in three months. In one year however, exports dived - 5.6% Intermediate Goods imports stayed unchanged in one month but increase +2% in three months and +2.9% in one year.Exports stayed quasi stable in one month or +0.2% and +1.1% in three months; in one year exports increased +2.5% Energy imports nearly matched exports and rose +6.2% in one month and +16.1% in three months. In one year imports fell -6.2% Exports rose respectively +7.3% +16.8% and stayed quasi stable or -0.1% in one year.
PRODUCER PRICES INDEX
Producer prices for the domestic market (excluding construction and energy) stayed quasi stable or +0.2% at 110.3 and ranked only second to Finland’s 103.3 FRANCE’s producer prices thus remained among the lowest of the EU 27 and for the seventh consecutive month. The Euro area producer prices stood at 113.4 and in the EU 27 at 114.7 The strongest price increases were recorded by Denmark +2.3% and Bulgaria +1.3% Lithuania’s prices index fell -0.6% The Netherlands -0.3% and the UK -0.2% The index components recorded for the most part quasi stable prices or +0.1% with the exception of non durable goods +0.2% increase.
In one year, and in the Euro area where producer prices rose + 2.3%, (+2.2% in the EU 27) French producer prices grew +1.9% ranking third behind Ireland’s +1% and Germany’s +1.7% The steepest increases were recorded by Luxembourg’s +8.9%
(provisional) the Netherlands’ +3.6% Finland’s +3.4% Italy’s +2.8% and Spain’s +2.6%
Out of the EU 27, only Denmark saw prices fall -0.6% and east European member states recorded substantial producer price increases: Lithuania’s jumped +7.8% Slovenia’s +5.1% Hungary’s +7.2% and Bulgaria’s +6.5% By comparison, Slovakia’s prices rose a milder +1.3% The strongest index component price increase included Intermediate Goods +5.1% in the Euro area and +5.2% in the EU 27.
