Key Takeaways
- French industrial production surged by 3.8% month-over-month in June, significantly exceeding expectations and reversing previous declines.
- Manufacturing production in France also showed a robust rebound, increasing by 3.5% month-over-month.
- Despite the strong production figures, France's year-to-date budget deficit widened to -€100.4 billion in June, up from -€94.0 billion previously.
- Nissan ((/stock/7201)) is reportedly in discussions with unions regarding potential job cuts at its European regional office.
- Indonesian stocks closed strong, gaining 1% to reach 7,540.60 points.
The French economy presented a mixed picture in June, with robust industrial and manufacturing output signaling a strong rebound, even as the nation's budget deficit continued to widen. Meanwhile, corporate news saw Nissan ((/stock/7201)) considering job cuts in Europe, while Indonesian equities posted solid gains.
France's industrial production experienced a significant surge in June, rising by 3.8% month-over-month, far surpassing the estimated 0.6% increase and recovering from a -0.5% decline in the prior month. On a yearly basis, industrial production grew by 2.0%, a stark improvement from the estimated -0.5% contraction and the previous -0.9% fall.
Manufacturing production mirrored this positive trend, expanding by a strong 3.5% month-over-month in June, well above the 1.2% estimate and reversing the previous -1.0% decrease. Year-over-year, manufacturing output increased by 2.4%, a notable acceleration from the prior -0.1% decline. These figures suggest a healthier-than-anticipated recovery in the French industrial sector.
However, the fiscal health of the nation showed signs of deterioration. France's year-to-date budget balance for June recorded a deficit of -€100.4 billion, worsening from the -€94.0 billion reported previously. This widening deficit could pose challenges for government spending and debt management in the coming months.
In corporate news, Japanese automaker Nissan Motor Co. Ltd. ((/stock/7201)) has reportedly initiated discussions with unions regarding potential job reductions at its European regional office. This development underscores ongoing restructuring efforts within the automotive industry amidst evolving market conditions.
Further afield, the Indonesian stock market concluded the trading session on a positive note. The Jakarta Composite Index gained 1%, closing strongly at 7,540.60 points. This performance highlights a positive sentiment in Southeast Asian markets.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.