French Q1 GDP Growth Confirmed at 0.3%

The French economy grew 0.3 percent on quarter in the three months to March 2019, slowing from an upwardly revised 0.4 percent expansion in the previous period and matching a preliminary estimate and market expectations, final figures showed. Household consumption rose further while fixed investment eased and net foreign demand contributed negatively.

Within domestic demand, household consumption increased slightly (0.4 percent vs 0.3 percent in Q4), driven by expenditures on goods (0.6 percent vs -0.3 percent) and energy rose (0.7 percent vs -0.4 percent). On the other hand, consumption of food dropped sharply (-1.1 percent vs a flat reading) while expenditure on services was steady at 0.6 percent. In contrast, fixed investment advanced 0.5 percent, slowing from a 0.6 percent expansion in the previous quarter, as government expenditure went up 0.7 percent, after a 1 percent increase in the prior period; and non-financial corporations and unincorporated enterprises eased to 0.7 percent from 0.8 percent. Meantime, household investment was unchanged, following a 0.3 percent contraction in Q4. Additionally, general government expenditure rose 0.2 percent, lower than a 0.4 percent in the last quarter of 2018.

Exports edged up 0.4 percent (vs 2.0 percent in Q4), while imports grew at a faster 1.4 percent (vs 1.1 percent in Q4).

Year-on-year, the economy expanded 1.2 percent in the first quarter of 2019, the same pace as in the previous three-month period.

French Q1 GDP Growth Confirmed at 0.3%

INSEE | Stefanie Moya |
5/29/2019 9:45:45 AM