France Economy Grows Less than Expected in Q3
France GDP expanded 0.2 percent quarter-on-quarter in the September quarter of 2016, compared to a 0.1 percent contraction in the three months to June while market expected a 0.3 percent growth, first estimate showed. While investment and government spending rose, household consumption unchanged and net external demand contributed negatively to the growth.
10/28/2016 6:22:49 AM
In the third quarter, household consumption stagnated for the second straight quarter. Government expenditure rose 0.4 percent, the same pace as in the preceding quarter. Total gross fixed capital formation grew by 0.3 percent, following a stagnation in the June quarter. Final domestic demand (excluding changes in inventories) was virtually stable, contributing 0.1 points to GDP growth.
Exports increased by 0.6 percent, faster than a 0.2 percent rise in the second quarter. Imports also went up 2.2 percent, following a 1.7 percent contraction in the preceding quarter. The foreign trade balance contributed negatively to the economy (-0.5 points after +0.6 points in the second quarter). In contrast, changes in inventories contributed positively: +0.6 points after -0.8 points in the June quarter.
Year-on-year, the GDP grew 1.1 percent, slower than a 1.3 percent expansion in the second quarter.