Consumption leads French GDP growth

In France, goods consumption, which shares 50% of total consumption posted a solid growth rate of 0.7% qoq in Q3. The industrial output inched up by 0.4% qoq at the same time.The Q3 GDP of the economy is expected to grow at 0.4% qoq, says Societe Generale. Moreover, the bank estimates, due to low inflation rate and moderate growth, real disposable income posted 1.6% yoy growth in Q3.

The October INSEE quarterly survey reveals, the investment expenditure in the manufacturing sector has been revised down to 1%. The business leaders anticipate a modest rebound in investment in 2016, which is likely to stant at 3% in value.

"Looking ahead into 2016, the combination of low oil prices, weak euro and tax cuts is likely to continue to positively affect business confidence and hence capex decision", says Societe Generale.