Global| Dec 10 2008Industrial Production Drops Sharply in France and Italy
Summary
Output plunges in Italy and in France In France a large part of the drop in IP is the weakened auto sector. Output in the auto sector fell by 14.3%. Declines, as the table shows, are widespread. The drops in output in France and in [...]
Output plunges in Italy and in France
In France a large part of the drop in IP is the weakened auto
sector. Output in the auto sector fell by 14.3%. Declines, as the table
shows, are widespread. The drops in output in France and in Italy are
worse than those in 2000 -2001. Output drops in France are gathering
momentum across sectors with the exception of capital goods. Italy
shows much the same situation with sequential growth rates indicating a
quickening pace of decline across sectors –the consumer sector being an
unpersuasive exception. In the quarter to date both countries show
sharp declines in output are underway in the -17% to -18% range
(annualized). Europe is in the throes of the severe output decline
phase of the recession. There are riots in Greece that mix some civil
unrest in with protests about how the economy is being managed.
| French IP excluding Construction | |||||||
|---|---|---|---|---|---|---|---|
| Saar except m/m | Oct-08 | Sep-08 | Aug-08 | 3-mo | 6-mo | 12-mo | Quarter-to-date |
| IP total | -2.7% | -0.8% | -0.5% | -14.7% | -12.3% | -7.2% | -18.3% |
| Consumer Goods | -0.4% | -0.2% | -0.6% | -4.6% | -1.8% | -3.3% | -4.3% |
| Capital Goods | -0.5% | 0.8% | 0.0% | 1.0% | -4.9% | 0.0% | 0.0% |
| Intermediate Goods | -3.5% | -1.7% | -0.9% | -22.0% | -16.3% | -10.1% | -26.0% |
| Memo | |||||||
| Auto | -14.3% | -5.9% | -0.2% | -58.2% | -44.4% | -29.2% | -69.3% |
| Italy IP excluding Construction | |||||||
| Saar except m/m | Oct-08 | Sep-08 | Aug-08 | 3-mo | 6-mo | 12-mo | Quarter-to-date |
| IP-MFG | -1.1% | -2.9% | 0.1% | -14.6% | -12.9% | -6.8% | -16.7% |
| Consumer Goods | 0.8% | -3.3% | 0.6% | -7.6% | -11.1% | -4.6% | -7.4% |
| Capital Goods | -1.5% | -2.7% | -1.1% | -19.1% | -18.2% | -8.7% | -19.9% |
| Intermediate Goods | -2.1% | -3.5% | 0.9% | -17.5% | -13.4% | -8.3% | -22.3% |
| Memo | |||||||
| Transportation | -5.8% | -5.6% | 1.7% | -33.4% | -30.5% | -19.8% | -42.9% |
Robert Brusca
AuthorMore in Author Profile »Robert A. Brusca is Chief Economist of Fact and Opinion Economics, a consulting firm he founded in Manhattan. He has been an economist on Wall Street for over 25 years. He has visited central banking and large institutional clients in over 30 countries in his career as an economist. Mr. Brusca was a Divisional Research Chief at the Federal Reserve Bank of NY (Chief of the International Financial markets Division), a Fed Watcher at Irving Trust and Chief Economist at Nikko Securities International. He is widely quoted and appears in various media. Mr. Brusca holds an MA and Ph.D. in economics from Michigan State University and a BA in Economics from the University of Michigan. His research pursues his strong interests in non aligned policy economics as well as international economics. FAO Economics’ research targets investors to assist them in making better investment decisions in stocks, bonds and in a variety of international assets. The company does not manage money and has no conflicts in giving economic advice.
More Economy in Brief
