ING: France's industrial momentum is fading

She stated that in recent months, the industrial sector of the French economy has performed well, while weak consumer sentiment has dragged down the services sector and domestic demand. However, this engine is losing momentum, with manufacturing output down 1.0% month-on-month in May. The continued weakness in the automotive industry is particularly concerning, with a 4.7% month-on-month decrease, providing further evidence of the challenges facing the European automotive sector. de Montpellier indicated that business survey data from June suggest that industrial output growth will slow in the coming months, although it will remain positive. However, as tensions in the Middle East ease, recent driving factors such as Asian disruptions may fade.