PARIS, May 9, 2008 (AFP) - French industrial production fell sharply in March, particularly in the auto sector, official data showed on Friday with analysts saying the figures point to deepening gloom for the economy.
    Industrial output fell by 0.8 percent in March from the figure for February, which had shown a rise of 0.3 percent.
    But auto industry production slumped 2.9 percent, after falling by 2.1 percent in February.
    Manufacturing output, excluding energy, agriculture and food processing, fell by 1.5 percent in March.
    Analysts said the data fitted a picture of darkening gloom for the French -- and to some extent eurozone -- economies, despite assurances on growth by the European Central Bank which is focusing on fighting inflation.
    The figures and analysis highlight strains for the right-wing government overseen by President Nicolas Sarkozy, one year after winning power with promises of radical reforms to boost growth and buying power, and to cut budget overspending.
    But since then France has been hit by global rises in oil and food prices. The euro has also risen to record high points against the dollar. This is an extra problem for exporters, although it helps to contain the cost of importing fuel.
    Production of consumer goods, the main driver of French growth in the last two years, fell by 0.8 percent, the output of investment goods fell by 1.1 percent, and production of semi-finished goods fell by 1.7 percent, the latest data showed.
    At BNP Paribas bank, analyst Mathieu Kaiser commented that the data showed a "heavy fall," and an even "more brutal" decline of manufactured output, "the heart" of overall industrial production.
    "The month of March seems to mark a turning point for industrial activity," he said. "All sectors of manufacturing weakened."
    Kaiser noted that the data was "coherent with bad results registered in March on the internal front and abroad."
    He was referring to a 1.7 percent fall in household spending and to a March trade deficit of 4.75 billion euros (7.34 billion dollars). That followed a trade deficit of 2.82 billion euros in February, to show a 12-month deficit of 43.75 billion euros.
    This was part of "a more general turning point for European activity as seen since the beginning of the year," he said.
    The March data suggested that an expected slowing of the French economy would arrive in the second quarter and would last for much of the year, he added.
    At Global equities, economist Marc Touati said: "The French economy is in the process of going from autumn to winter."
    Overall economic activity in France was likely to worsen, and growth of gross domestic product would remain weak throughout the year at an average of 1.4 percent, he said.
    This outlook was in contrast to the view of the European Central Bank which, looking at past performance, held that growth remained resilient in the eurozone.
    "When the euroland monetary policymakers realise the extent of the damage, it will be clearly too late," Touati added, given that any easing of monetary policy can take six to nine months to affect activity.
    At consultants Xerfi, Alexander Law commented that the data showed a "severe correction" and noted that other recent results showed a weakening of order books in addition to the "very bad" trade figures.
    In the auto sector, consumers were turning to small cars with low fuel consumption, but these were built mostly in eastern Europe.
    The strength of the euro was a particular problem for French industry and the "inflexible" stance of the ECB in not cutting its short-term interest rates implied the euro would remain high for at least six months.