French, Italian Industrial Output Unexpectedly Declines

French and Italian industrial production unexpectedly fell in October, underscoring the divide between Germany’s surging economy and the rest of Europe as the sovereign debt crisis threatens the recovery.

Output from French factories, mines and utilities declined 0.8 percent after gaining 0.1 percent in September, Paris-based statistics office Insee said today. Italy’s production fell 0.1 percent after a 2.1 percent drop in September, Rome-based Istat said. Economists forecast a 0.3 percent gain in France and 0.7 percent increase in Italy, according to Bloomberg News surveys.