“French industrial production fell more than expected in January as Europe’s second-largest economy teetered on the brink of its third recession in four years.
Output from factories, mines and utilities fell 1.2 percent in the month from December, national statistics office Insee said today. Economists had expected a 0.2 percent drop, according the median 25 estimates in a Bloomberg survey.
The decline underlines difficulty President Francois Hollande faces in trying to revive an economy that fell back into recession early last year and shrank again in the fourth quarter.Factory output fell 1.4 percent in January and 4.6 percent in the three months through January, led by a slump in car production.
“France remains stuck in a recessionary mode,” said Philippe Gudin, an economist at Barclays in Paris. “The unemployment rate is flirting with historical highs and household income is hit by higher taxes. The stabilization we had expected from the beginning of 2013 does not seem to have taken place.” ….”
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