French industrial production recovered strongly in December, increasing by 1.1% during the month, following the increase in November (+0.5% during the month). The data is also good in the manufacturing industry subsector, where production increased by 1.2% in the month (after +0.2% in November). The manufacture of transport equipment, industrial products and agri-food products increased considerably in December. On the contrary, production fell in the capital goods manufacturing branch. In total, between the end of 2022 and the end of 2023, French manufacturing production increased by 0.3%.
From these figures we can conclude that the French industrial sector continues to recover. After a very difficult 2023 in general, the end of the year was a little better and suggests that 2024 begins in better conditions. The worst is probably over.
In fact, all indicators already published for January suggest that the industry’s recovery should continue in the first quarter. In surveys, industrial companies appear somewhat more confident in the future and more optimistic about their production in the coming months. Furthermore, order books have begun to recover, although still at very low levels. Demand no longer appears to be weakening. Therefore, there are signs of a sustained rebound in the industrial sector, and we can expect production to grow slightly faster in 2024 than in 2023. However, this rebound is likely to be gradual and not continuous throughout the year, as external shocks occur. such as blockades, strikes or geopolitical events could temporarily limit industrial production.