PARIS: Supported by lower inflation for the month of February (February consumer price index +0.20%), France February trade balance remains strongly in deficit, below its 5 years average of EUR -4.64 billion and slightly higher than previous month, given at EUR -5.19 billion (previous: EUR -5.42 billion). Over 12 months period, the deficit reaches EUR -60.2 billion (2017: EUR -62.5 billion), backed by a slowdown in imports for the month of February, estimated at EUR 44.90 billion (-1.40%).
Exports are stabilizing, valued at EUR 39.7 billion (-0.90%), put under pressure by chemicals, electric materials and telephony exporting sectors while contributors such as aerospace and transportation remain. Accordingly, we remain positive as to the French economic recovery outlook, waiting for Tuesday’s February industrial production monthly data that are expected to deliver positive numbers.
