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.
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.
11/14/2014 8:20:08 AM