French Economy Expands 0.3% in Q3
The French economy advanced 0.3 percent in the third quarter of 2014, after a revised 0.1 percent contraction reported from April to June. Better than expected growth was driven by government expenditure and household spending while net exports and capital investment decreased.
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Households’ consumption expenditure moderately increased (+0.2 percent after +0.3 percent). Government expenditure rose 0.8 percent, following a 0.5 percent expansion in the second quarter. Total gross fixed capital formation went down again (-0.6 percent after -0.8 percent). Final domestic demand (excluding changes in inventories) was still going up and contributed for +0.2 points to GDP growth (after 0.1 points in the Q2 of 2014).
Exports recovered (+0.5 percent after -0.1 percent) while imports accelerated (+1.1 percent after +0.3 percent). Consequently, the foreign trade balance contributed negatively to activity (-0.2 points after -0.1 points in the second quarter). Changes in inventories contributed positively to GDP growth (+0.3 points after - 0.1 points).
Year-on-year, the GDP grew 0.4 percent, following a 0.1 percent expansion in the previous period.