- Anton Boerner, head of the BGA trade association
While Germany, European biggest economy, continues missing economists forecasts, France recorded an improvement in industrial output in June. French industrial production rebounded, rising as much as 1.3% following the 1.6% decline in the preceding month, while analysts had expected a 1.0% increase. This brings the annual rate of change in output to -0.4% compared with -1.8% projected and -3.4% prior. Manufacturing production advanced 1.6% in June, following a decrease of 2.3% recorded in May. Meanwhile, the manufacturing gauge declined to 47.8 points in July, Markit said earlier this month, down from June's 48.2. Analysts have long been sharing negative outlook on the French economy, as it is believed that so far not enough have been done politically to improve competitiveness of the economy. Hence, France is expected to continue to underperform in the coming years.
Meanwhile, German trade surplus narrowed in June compared to the previous month. The country's foreign trade generated a non-seasonally adjusted surplus of 16.2 billion euros in the reported period, down from a 18.8 billion euros registered in the previous month. Destatis said in its latest report that exports had increased 0.9% in June, while imports jumped 4.5%, their strongest monthly gain since November 2010. Even despite a marginal boost from trade, a contraction in GDP is expected.
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