French industrial output fell more than expected for the second consecutive month in May as activity was dented by strikes and public holidays, data showed today.
National statistics institute INSEE said firms in the euro zone's second largest economy cut output by 1.4 per cent in May following a sharp drop in production in April.
Industrial production excluding energy, agri-food businesses and construction - considered by INSEE the best measure of manufacturing output - fell 1.7 per cent in May compared with the previous month.
This was sharply below economists' forecast for overall output to edge down 0.1 per cent and manufacturing output to remain flat.
INSEE said the fall in overall production was due mainly to a drop in production of consumer and intermediary goods, as well as commodities and food.
It confirmed overall output dropped 0.8 per cent in April and revised the drop in manufacturing output to 0.4 per cent from a previously reported 0.3 per cent.
INSEE also reported that French consumer price inflation rose 0.3 per cent in June in EU-harmonised terms, thanks to a jump in the price of fresh produce and services.
The rise, bigger than the 0.1 per cent forecast by economists, lifted the annual inflation rate to a stronger-than-expected 2.0 per cent.
INSEE said the rise stemmed mainly from higher prices for fresh produce, other food and services, in particular transport and communications. The cost of energy products and manufactured goods was down.