By the end of 2024, France’s industrial scene had changed for the worse, with manufacturing and general industrial output down in December. Driven by major downturns in important sectors including pharmaceuticals and transport equipment. France industrial output slowdown has sparked worries about industrial growth direction given increasing energy prices.
Industrial and manufacturing output: a mixed bag
The latest figures show a 0.7 percent decrease in manufacturing output in December 2024, a small rebound from November’s 0.2 percent rise. After a tiny 0.1 percent rise in the prior month, general industrial output also fell by 0.4 percent. These numbers indicate a slowdown of industrial momentum as the year ended.
Sector-wise performance: who struggled and who thrived
Sectors that declined
1. Transport apparatus manufacturing suffered a setback.
Sectors for transport equipment being among the most affected, it suffered a 5.4% drop in December, a steep turnaround from 4.0 percent growth in November.
Following a 6.4% rise the previous month, the car industry saw a still steeper 11.0 percent fall.
2. Commercial goods such as pharmaceuticals and others see a drop.
In general, other industrial goods dropped 1.0 percent.
The pharmaceutical market showed a significant 7.9 percent decrease, evidencing production issues or lower demand.
Industries Exhibiting Resilience
1. Agri-Food Businesses Recover.
A 2.8% rise in December followed a 0.6% dip in November, therefore suggesting a recovery in food processing and manufacturing.
2. Energy and extractive or industrial sectors.
Energy-related sectors including electricity, water, and extractive industries saw a 1.2% increase in output.
Coke and refined petroleum products rose 0.8 percent so fuel production seems steady.
Quarterly and yearly developments: What changed in 2024?
Production from manufacturing fell by 1.9% in Q4 of 2024 relative to the same quarter of 2023.
Generally speaking, broader economic constraints resulted in a 1.2 percent annual drop in industrial output.
The automotive sector crashed by 16.5% annually and the transport equipment sector dropped steeply by 7.9%.
Some sectors did fare; agri-food businesses expanded 1.6 percent and energy-related industries were up 2.5 percent.
The energy crisis and its impact on heavy industries
Energy prices in 2024 were high, which hurt energy-intensive businesses and magnified production problems in major sectors. The harm is clear when Q2 2021 is compared side by side.
- Production in the steel sector fell by 23.7%.
- Down 20.2% in glass production.
- Consumer chemicals: declined by 14.9%.
- Production of pulp, paper, and cardboard fell by 11.6%.
The industries depending on high energy use have been severely affected by the ongoing rise in energy prices; their reduced production and greater operational expenses reflect it.
France Industrial Output Slowdown: Difficulties and Possibilities
Several obstacles threaten to impede France’s industrial revitalization as 2025 comes near:
Particularly for industries in production, energy costs still present significant challenges.
Structural challenges in the automotive sector include changing customer expectations and supply chain disturbances.
Agri-food and energy-related industries, on the other hand, are showing more resilience and possibilities for expansion.
Defining the direction the industrial sector of France will take in 2025, these next few months will be critical in deciding whether these patterns stabilize or persist downwards.
