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French figures fuel recession fears

Official figures show that French industrial output fell unexpectedly in June, hit by declining production of food, cars and capital goods. This has heightened fears of a recession in France and added to the pile of weak euro zone data.

Output overall fell by 0.4% in the euro zone's second-biggest economy, national statistics office INSEE said. Economists had expected it to rise by the same amount.

May's headline figure was revised down to -2.9% from a previously reported -2.6%.

The French data follow Italian growth figures on Friday which showed a fall in gross domestic product of 0.3% in the second quarter. Some analysts believe this has set the stage for a contraction in the whole euro zone economy when figures are released later this week.