French Industrial output drops
Industrial output drops in France
Fri, 09 Aug 2013 09:14:25 GMT
Official figures show that France’s industrial output fell in June, as the eurozone’s second-largest economy is witnessing a general dissatisfaction at its rising unemployment rate.
Data released by the statistics agency, INSEE, on Friday indicated that industrial output dropped 1.4 percent in June after a revised 0.3 percent fall in May.
A decrease in the production of food and agricultural goods as well as in energy and mining is regarded to be the cause behind the contraction.
The disappointing figure comes as other economic data and business confidence surveys have recently suggested that France may be pulling out of recession.
However, the Friday report by INSEE showed that any recovery in France’s economy will remain fragile.
Data presented by the French Labor Ministry on July 24 indicated that the unemployment rate in France hit a new record high of 11.2 percent in June.
The French government seeks to slash state spending by 60 billion euros over its five-year term to meet deficit targets.
On August 5, the International Monetary Fund (IMF) said if France wants to experience economic growth, it should ease the pace of its austerity policies that are aimed at bringing the budget deficit under control.
France is struggling to revive an economy, which has barely grown in more than two years, and tackle high unemployment.
Even though the administration of President Francois Hollande has increased taxes and implemented several reforms and spending cuts to lower the huge debt load, the measures have proven unproductive since the financial crisis in the eurozone has not been resolved.