French economic growth accelerates in Q3 2018

The French GDP growth accelerated a bit in the third quarter. INSEE showed that in terms of volume, the GDP grew 0.4 percent, following a 0.2 percent growth seen in the prior quarter. Household consumption expenditures rebounded, whereas total gross fixed capital formation rose almost as rapidly as in the previous quarter. In all, final domestic demand excluding inventory changes accelerated, contributing 0.5 points to the GDP growth.

Imports dropped 0.3 percent in the third quarter, whereas exports were up 0.4 percent. Overall, foreign trade balance added 0.2 points to the GDP growth. Conversely, changes in inventories contributed negatively to GDP growth.

Total production accelerated in the month. Production in goods and services accelerated to 0.6 percent in the third quarter. Goods rebounded, rising 0.6 percent, and it grew at a slightly more rapid rate than in the previous quarter in services.

Output in manufactured rebounded, rising 0.7 percent. Production in refineries rose 11.6 percent. It had been markedly low in the second quarter because of maintenance work. Construction was at a standstill. Household consumption expenditure rebounded in the third quarter, rising 0.4 percent. Consumption of goods bounded back considerably, whereas that of services accelerated a bit. In services, transport expenses rebounded by 3.4 percent following a considerable fall in the second quarter.

Expenditures on energy were at a standstill, after a decrease because of temperatures higher than seasonal rooms in the second quarter. Consumption of food products stabilized after two quarters of fall.

In the third quarter, total GFCF rose at the same pace as in the previous quarter. Meanwhile, household investment dropped a bit. In the third quarter, stock variations subtracted 0.3 points from the GDP growth.

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