French economic growth recovers in Q3, household consumption remains steady

Economic growth in France recovered during the third quarter of this year, although household consumption remained stagnant during the period.

France’s gross domestic product (GDP) in volume terms during the Q3, recovered moderately by +0.2 percent, after −0.1 percent in Q2, data released by the country’s statistics agency INSEE showed Tuesday. However, household consumption expenditure stagnated for the second quarter in a row, whereas gross fixed capital formation (GFCF) increased slightly by +0.2 percent, after 0.0 percent in the previous quarter. Final domestic demand (excluding inventory changes) remained virtually stable, contributing +0.1 points to the GDP growth in Q3, as in the previous quarter.

Further, imports recovered sharply, rising +2.5 percent, after −1.7 percent slump in Q2, particularly due to purchases of raw hydrocarbons and transport equipment. At the same time, exports accelerated moderately by +0.5 percent, following a decline of 0.1 the last quarter.

Moreover, sales in food products, refined petroleum products, capital goods and other industrial goods increased but those in agricultural products tumbled. All in all, foreign trade balance weighed down on GDP growth in Q3, subtracting 0.6 points after a contribution of +0.5 points in the previous quarter.

Changes in inventories contributed to GDP growth by +0.7 points, after −0.7 points in Q2. In particular, they increased in transport equipment, raw hydrocarbons and equipment goods.

Meanwhile, the EUR/USD has formed a ‘two-crows’ bearish candlestick pattern at 1.05, while at 9:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at 41.52 (below the +75 benchmark for bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex