French Manufacturing Slumps 1.8%: Worst Quarterly Drop Since 2012

French manufacturing fell 1.8% in the first quarter. Industrial Production fell 1.2%, the worst start in 6 years.

First Germany, Now France

The eurozone recovery is faltering, first with Germany, now with France.


In February, German Industrial Output fell by 1.6 percent after rising by a revised 0.1 percent in January, data from the Economy Ministry showed. February’s drop was the biggest since August 2015 and compared with a Reuters consensus forecast for a rise of 0.3 percent.

In March, German Industrial Production Rebounded 1.0% but that would seem to leave Germany in the red.

Upswing Intact?

Germany's economy minister said the 'Upswing Remains Intact' and industrial output edged up 0.1 percent on the quarter.


The math seems screwy, no doubt due to seasonal adjustments or lies, but here's the kicker: "Factory orders dropped for a third month running in March as foreign demand weakened."

Germany New Orders Dip 0.9% in March

As translated from Destatis.

According to preliminary data from the Federal Statistical Office (Destatis) in March 2018, price-adjusted new orders in the manufacturing sector were 0.9% lower than in the previous month, seasonally and calendar- adjusted . For February 2018, after revision of the preliminary results, there was a decrease of 0.2% compared to January 2018 (provisional value: + 0.3%).

Trump's trade war with everyone and his reimposed Iran sanctions will add to European misery.

Mike "Mish" Shedlock

No. 1-18

In fact, the rates are negative. Try to open a bank account, and you are going to pay the bank for the privilege of lending your money. Mafia tried that trick and failed, so had to resort to extortion.


Fifth major weakness of the EU -- extreme over-regulation, even worse than in US; think regulations on the curvature on imported bananas.
Sixth major weakness of the EU -- it is by far the world's largest fossil fuel importer, including oil, gas, coal; thus very exposed to the consequences of turmoil in distant places, and to political blackmail.
Seventh major weakness of the EU -- excessive immigration of unassimilable elements, which is already radically transforming European culture.
Eighth major weakness of the EU ... oh, we could go on & on. Suffice to say that the Europe of the future is going to be very different from the Europe of the past, and not in good ways.


Friendly reminder that people should remember the SHIFT + Enter trick for creating paragraph breaks. It's a bit disconcerting opening a thread expecting 15 posts and seeing only 3 instead!

Don't have much to add otherwise but will second Bam_Man's sentiment of how crazy it is they've been at ZIRP so long. NIRP on the horizon?


Populism isn't dead in the EU, just biding its time. However, I already think of pretty-boy Macron as populist. A populist for the bourgeoisie, not the mass of people per se.


Try squaring those 4 corners under their existing regime. How?