Dutch International Group: France's industrial momentum is fading

Charlotte de Montpellier of the Holland International Group stated in a report that the French industry is losing momentum, while sentiment surveys and other growth drivers remain stagnant. She noted that in recent months, the industrial performance in the French economy has been relatively strong, but weak household sentiment has dragged down the service sector and domestic demand. However, this engine is losing steam, with manufacturing output dropping by 1.0% month-on-month in May. The continued weakness in the automotive industry is particularly concerning, with a 4.7% decrease month-on-month, providing further evidence of the challenges facing the European automotive industry. de Montpellier stated that commercial survey data for June suggests that industrial output growth in the coming months will slow down, although it will still remain positive. However, recent drivers such as tensions in the Middle East and disruptions in Asia may fade away.