The French economy is losing momentum.
After two consecutive months of growth, industrial production declined by 1.4% in April 2025, according to national statistics agency Insee.
This contraction is primarily attributed to a sharp drop in electricity and gas production, a consequence of unseasonably mild weather.
The extractive, energy, and water industries recorded a 5.0% decline, including a 5.5% fall specifically in electricity and gas production and distribution.
Insee noted that April 2025 was the fifth warmest April since 1900, leading to reduced energy demand.
Downturn in Key Manufacturing Sectors
Manufacturing was not spared, with output falling by 0.6%. The decline was especially pronounced in the coke and refining sector, down 14.0%, and in transport equipment manufacturing, which dropped 2.4%.
Within that category, automobile production slipped by 0.4%, while the aerospace, shipbuilding, and rail sectors contracted by 3.7%.
Other segments also took a hit, notably the production of electrical, electronic, and IT equipment, which fell by 1.9%, reflecting a technological slowdown in the industrial sector.
Some Sectoral Bright Spots
Not all indicators were negative, however. The agri-food industry grew by 1.1%, and the production of other industrial goods—including chemicals, pharmaceuticals, and metallurgy—edged up by 0.3%.
Over the February–April quarter, total industrial production declined by 0.8% compared to the same period in 2024, while manufacturing output fell by 1.0%.
The most affected sectors were other industrial goods manufacturing (-1.8%) and IT and electronic equipment (-2.0%).
The agri-food sector also saw a slight decline (-0.5%).
Resilience in Select Industries
Some sectors held firm over the same period: transport equipment rose by 2.0%, coke and refining gained 4.2%, and the energy/extraction/water segment posted a modest increase of 0.5%.
In April 2025, the construction sector expanded by 0.8%, driven by a notable rebound in building construction (+1.7%).
Nevertheless, over a one-year horizon, the trend remains negative, with output down 1.5% for the February–April period.
Trade Deficit Reaches New High
At the same time, France’s trade deficit worsened in April, reaching €7.4 billion, according to customs data. Imports remained steady at €57.8 billion, while exports dipped by €100 million, falling to €50.4 billion.
The energy sector continues to weigh heavily on the trade balance. Although imports declined, exports dropped even more significantly, further deteriorating the energy balance.
Ongoing Deterioration Since January
This latest drop confirms a troubling trend: the trade deficit has worsened every month since the beginning of the year.
It stood at €6.1 billion in January, €6.8 billion in February, and €7.3 billion in March. On a rolling 12-month basis, the trade deficit now totals €80.4 billion—just shy of the €81 billion recorded in 2024.
France has not posted a trade surplus in goods since 2002, and the April 2025 figures confirm the persistence of a structural imbalance in foreign trade, driven largely by energy costs and industrial vulnerabilities.
Mounting Concerns Over Economic Health
The combined decline in industrial output and the growing trade deficit raises concerns about the health of the French economy.
Mixed industrial performance, coupled with a strained trade balance, underscores the urgent need to rethink industrial and energy policies to bolster the country’s economic resilience.
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