French Q3 GDP Growth Revised Lower to 0.3%

France's quarterly economic growth was revised lower to 0.3 percent in the three months to September 2018, compared to a near one-year high of 0.4 percent previously estimated and following a 0.2 percent growth in the previous period. The negative contribution from inventory changes was bigger than initially thought.

Final domestic demand added 0.5 percentage points to the GDP growth in the third quarter and net foreign demand added 0.3 percentage points, while changes in inventories subtracted 0.4 percentage points (vs 0.3 percentage points in early estimates).

Within domestic demand, household consumption grew by 0.4 percent in the three months to September, rebounding from a 0.1 percent contraction in the second quarter. It was the steepest increase in private spending in a year as consumption of goods bounced back significantly, in particular energy and food, and that of services accelerated slightly. In services, transport expenses bounced back markedly after a significant decline in Q2 due to strikes in rail transport. In addition, fixed investment increased by 0.9 percent, following a 0.8 percent advance in the previous quarter, boosted by corporate investment, notably investment in IT activities and information services, as well as in automotive. Also, government expenditure went up 0.2 percent, after a 0.3 percent rise in the prior quarter. 

Exports surged 0.3 percent, after being unchanged in the second quarter; while imports fell 0.6 percent, compared to a 0.6 percent increase in the previous period.

Year-on-year, the economy expanded 1.4 percent in the third quarter, easing from an upwardly revised 1.7 percent growth in the previous three-month period.

French Q3 GDP Growth Revised Lower to 0.3%

INSEE | Joana Ferreira |
12/21/2018 8:21:16 AM