--French May industrial output +0.3% on month vs rev -0.4% Apr
--French May manufacturing output +0.3%/month vs rev -0.9% Apr
--French May industry output above market forecasts

Paris, July 18 (BridgeNews) - French industrial output rose a monthly 0.3% in May as production quickened in the automobile and food sectors, according to national statistics institute INSEE. Manufacturing output, which excludes energy, food and construction, rose 0.3% from the prior month. The data was above market expectations. (See table .6662).
Production for the month of April, was revised lower, with industry output revised to down 0.4%, originally reported as down 0.3%, and manufacturing output revised to down 0.9%, originally reported down 0.7%. On a year-over-year basis, May industry production rose 1.8% and manufacturing output was up 2.1%.
While analysts were expecting a rise in industrial output in May, they also warn that the increase is likely to be short-lived due to the effects of the global slowdown on the French economy. This pessimistic view is supported by recent business surveys which show confidence continuing to slide, with sentiment weakest in the consumer goods sector. The most recent INSEE business survey showed that the recent slowdown is expected to continue over coming months. Those questioned say orders have fallen and stock levels are above average levels.
A jump in automobile output boosted the index with output rising 1.5% on the month. In April automobile output slumped 2.3% and was stable in March following several months of robust growth.
The food sector, with a 0.9% increase on the month also pushed up the index, helping to compensate for a decline of 1.0% in construction. Output in the intermediate goods sector rose in May, up 0.2% following a 1.1% decline in April, bucking a downward slide started late in 2000. Consumer goods production fell 0.2% after a rise of 0.4% the prior month. The April data reversed a downward trend in this sector which began at the end of last year. Output of capital goods remained unchanged after a 0.6% drop the previous month.