-Insee: France Q4 industry outlook index +21 vs +25 in Q3
--Insee survey: France's Q4 capacity use rate 87.3% vs 87.2% Q3
--Insee survey: France's Q4 production bottlenecks 35% vs 37% Q3
By BridgeNews
Paris--Feb. 1--Demand for French manufactured goods is expected to shrink in the first quarter of this year after flagging in the fourth quarter, according to the latest quarterly survey of business leaders by national statistics institute INSEE. The data, collected in January, also showed continued strains in capacity utilization, and production bottlenecks.
* * * The index of overall manufacturing demand expectations for the next three months fell to +21 in the January survey from a revised +25 in October. Gains were cooled by a fall in the outlook for foreign demand, with that index slumping to +12 from +23 in the 3 months to October, INSEE said. Expectations for global demand also cooled slightly with the index dropping to +21 from +25 in the October survey
The survey is of the same series as INSEE's monthly industry survey index, but contains additional data on key factors of production and hiring difficulties.
In the fourth quarter, the capacity utilization rate for all French industry was 88.3%, compared with 87.2% at the end of the third quarter. In manufacturing alone, the capacity use level was 88.0%, unchanged from the third quarter and up from 84.3% a year ago.
The sustained rise is a source of concern for BOF Governor Jean Claude Trichet, who cited the "record high" levels at his semi-annual economic outlook press briefing in December. Trichet also expressed concern about bottlenecks, saying they could crimp French growth ahead. Insee said 35% of all industry firms reported bottlenecks in the fourth quarter, compared with 37% in the third quarter. For the manufacturing sector alone, 40% of firms reported production gluts, unchanged from the third quarter.
Elsewhere, the index that measures hiring reached a record, hitting +19 after +15 in the third quarter for all industry. For manufacturing alone the index was +22 compared with +16, confirming continued widespread hiring difficulties. More