French Industrial Output Surges 3.8% Even as Budget Gap Widens

French industrial activity rebounded sharply in June, with overall production rising 3.8% from May, far outpacing the 0.6% consensus forecast and reversing a 0.5% decline the previous month. On an annual basis output grew 2.0%, the first positive reading since last November. Manufacturing mirrored the broader upturn, advancing 3.5% on the month—nearly triple analysts’ expectations—and 2.4% year on year. The surge was led by transport equipment and chemicals, according to the national statistics office. Despite the production rebound, France’s public finances deteriorated. The cumulative budget deficit reached €100.4 billion at the end of June, widening from €94 billion a month earlier. Elsewhere in Europe, Finland posted a June trade surplus of €530 million, up from €140 million in May, as exports outpaced imports.