France’s industrial output is likely to have grown decently in April. The INSEE manufacturing survey has been providing a better scenario of the sector recently as compared to the PMIs. Industrial production in France is expected to have grown 0.9 percent on a sequential basis in April, said Societe Generale in a research report. Following the subdued output in late 2015, energy production is also expected to rebound.
However, the refinery strikes in May are likely to considerably impact the refined petroleum products’ output in the future. A similar strike had taken place in October 2010 that resulted in a 60 percent m/m decline in refined petroleum products’ output. But the effect on overall output was insignificant due to its relatively low weighting. If the April’s industrial output meets the above-mentioned forecast, the total industrial output is expected to grow 0.2 percent quarter-on-quarter in the second quarter of 2016, added Societe Generale.
Meanwhile, Italy’s industrial production is also expected to have grown nationally in April, given the consistent strong factory PMI of April, which was above 56 for the second straight month. According to Societe Generale, industrial output is likely to have gained slightly by 0.3 percent on sequential basis.
The material has been provided by InstaForex Company – www.instaforex.com