France GDP Stagnates in Q2
The French economy unexpectedly recorded no growth in the second quarter of 2016, following an upwardly revised 0.7 percent expansion in January to March period and missing market consensus of a 0.2 percent growth. While household consumption weakened, investment and exports declined and government spending was steady.
7/29/2016 8:40:37 AM
In the June quarter, household consumption showed decelerated sharply (+0.0 percent after +1.2 percent in the previous three months quarter). Government expenditure expanded 0.4 percent, the same pace as in the preceding quarter. In contrast, total gross fixed capital formation declined by 0.4 percent, after growing 1.3 percent in the March quarter. Final domestic demand (excluding changes in inventories) was flat, giving flat contribution to GDP growth (after +1.0 points in Q1 2016).
Exports shrank 0.3 percent, unchanged fromaccelerating from the previous quarter. Imports dropped by 1.3 percent, compared to a 0.5 percent growth in the first quarter. The foreign trade balance contributed positively to the economy (+0.3 points after -0.2 points in the preceding quarter). Changes in inventories also contributed negatively: -0.4 points after -0.1 points in the March quarter.
Year-on-year, the GDP grew 1.4 percent, slightly faster than a 1.3 percent expansion in the previous period.