March 13, 2024
In January 2024, manufacturing output decreased (‑1.6%) in France
In January 2024, output decreased over a month in the manufacturing industry (‑1.6% after +0.5% in December 2023) and the whole industry (‑1.1% after +0.4%).
Over a month, output fell back notably in the “other manufacturing” industries
In January 2024, production fell back in the “other manufacturing industries” (‑1.5% after +1.3%), as well as in the manufacture of transport equipment (‑5.3% after +1.6%): it fell back in the “other transport equipment” (‑4.8% after +3.8%) and decreased again in the manufacture of motor vehicles, trailers and semi-trailer (‑6.0% after ‑1.8%). It went down sharply in the manufacture of coke and refined petroleum products (‑10.5% after ‑1.8%) and declined slightly in the manufacture of machinery and equipment goods (‑0.3% after ‑3.9%). On the contrary, output rebounded in mining and quarrying, energy, water supply (+1.6% after ‑0.3%) and increased again in the manufacture of food products and beverages (+1.5% after +1.4%).
Over a year, manufacturing output was up by 0.3%
Output over the last three months (November 2023 to January 2024) was higher than that of the same months of the previous year in the manufacturing industry (+0.3%) and in the whole industry (+0.8%).
Over this one-year period, output went up significantly in the manufacture of transport equipment (+7.2%) and in mining and quarrying, energy, water supply (+4.0%). It was almost stable in the “other manufacturing industries” (+0.1%). On the contrary, it decreased in the manufacture of food products and beverages (‑2.0%), in the manufacture of machinery and equipment goods (‑1.5%) and in the manufacture of coke and refined petroleum products (‑4.5%).
Output in some energy-intensive industries remained low compared to the level of 2021
In the context of high electricity and gas prices invoiced to firms given the contracts agreed in 2022 and 2023 for 2024, energy-intensive industries are particularly exposed to rising –or persistently high– production costs, which may affect their output. Output over the last three months (November 2023 to January 2024) remained thus down sharply compared to that of the second quarter of 2021 (last quarter before the sharp rise of energy prices), particularly in the manufacture of pulp, paper and paperboard (‑16.4%), the manufacture of basic iron and steel and of ferro-alloys (‑18.9%), the manufacture of glass and glass products (‑15.7%) and the manufacture of basic chemicals (‑12.7%).
The monthly evolution of the December 2023 manufacturing index has been revised downwards
Compared to the previous release, the evolution of the manufacturing index between November and December 2023 has been revised downwards by 0.7 points (after rounding) at +0.5% instead of +1.2%, half due to revised raw data (‑0.37 points) and for the other half due to the updating of the SA-WDA models (‑0.35 points). The evolution of the index for the whole industry has also been revised downwards by 0.7 points (after rounding) at +0.4% instead of +1.1%.
Source: INSEE
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.
