France GDP Growth Strongest in 4 Quarters
France economy advanced 0.5 percent quarter-on-quarter in the first quarter of 2016, compared to a 0.5 percent expansion in the three months to December 2015 and beating market consensus of a 0.4 percent growth, first estimate showed. It is the strongest expansion since the June quarter 2015 as a rebound in household spending and an increase in investment offset a slowdown in government expenditure and a decline in exports.
4/29/2016 7:07:25 AM
In the first quarter of 2016, households final consumption expenditure grew by 1.2 percent (after -0.1 percent in the December quarter). Government expenditure rose 0.4 percent (from +0.5 percent). Total gross fixed capital formation increased by 0.9 percent (from +0.7 percent). non-financial corporations' investment rose 1.2 percent, as compared to a 0.5 percent rise in the preceding quarter. Final domestic demand excluding inventory changes accelerated and contributed for +0.9 points to GDP growth (after +0.2 points in the December quarter).
In contrast, exports declined by 0.2 percent after gaining 1.0 percent in the final quarter of 2015. Imports grew by 0.5 percent, slowing from a 2.1 percent increase in the preceding three months. That brought the foreign trade balance contributed negatively to the economy (-0.2 points after -0.4 points in the December quarter). Changes in inventories contributed negatively to GDP growth (-0.2 points after +0.5 points).
Year-on-year, the economy expanded 1.3 percent, following a 1.4 percent growth in the fourth quarter 2015.