The French economy showed no growth in the second quarter of 2014, according to the final figures from INSEE and matching preliminary estimates. The GDP continued to stall during April to June period, following a stagnation in the first quarter, as gross fixed capital formation remained depressed while government consumption stayed flat.
On a quarter-on-quarter seasonally adjusted basis, households’ consumption expenditure upturned (+0.4 percent after –0.6 percent), while total gross fixed capital formation (GFCF) remained depressed (–1.1 percent after –0.9 percent). All in all, final domestic demand (excluding changes in inventories) slightly increased and contributed for +0.1 points to GDP evolution (after –0.4 points in Q1).
Imports decelerated (+0.4 percent after +0.8 percent), but slightly less than exports (+0.1 percent after +0.6 percent). Consequently, the foreign trade balance contributed negatively to activity (–0.1 points). Finally, changes in inventories had a neutral contribution to GDP growth (0.0 points, after +0.5 points in Q1).
Government expenditure remained flat at 0.4 percent, unchanged from the previous quarter.
Year-on-year, the GDP grew 0.1 percent in the second quarter of 2014, following a revised 0.8 percent growth in the preceding period.
9/23/2014 8:56:13 AM