French economy recorded no growth in the second quarter of 2014, after it was already flat in the first, according to the preliminary figures. While domestic demand increased, foreign trade and changes in inventories dragged the expansion down.
On a quarter-on-quarter seasonally adjusted basis, households’ consumption expenditure accelerated (+0.5 percent after -0.5 percent) and the decrease of total gross fixed capital formation was slightly deepened (-1.1 percent after -1.0 percent). Final domestic demand (excluding changes in inventories) climbed sharply and contributed positively to GDP in Q2 (+0.2 points after -0.4 points in Q1 of 2014).
Government expenditure increased 0.5 percent, slightly up from a 0.4 percent increase in the Q1 of 2014.
Imports slowed (+0.4 percent after +0.6 percent), while exports showed no growth (0.0 percent after +0.5 percent). Consequently, the foreign trade balance contributed negatively to activity (-0.1 points after +0.0 points). Changes in inventories also contributed negatively (-0.1 points after 0.0 points).
Year-on-year, the GDP grew 0.3 percent in the second quarter of 2014, following a 0.7 percent increase in the previous period.
8/14/2014 8:19:53 AM