French economy rebounds in Q3, growth still remains muted following terror attacks

The French economy rebounded during the third quarter of this year; however, growth still remained muted, following terror attacks in the region and soft agricultural output.

France’s gross domestic product (GDP) grew 0.2 percent sequentially, in contrast to a 0.1 percent fall in the second quarter, data released by the statistical office Insee showed Friday.

Household consumption expenditure gained 0.1 percent after staying flat. Households' gross fixed capital formation accelerated again, to 0.7 percent from 0.4 percent. Overall, final domestic demand contributed for +0.2 points to GDP growth in the third quarter.

Imports bounced back sharply by 2.5 percent, following a 1.5 percent decrease. At the same time, growth in exports improved to 0.7 percent from 0.1 percent. Overall, the foreign trade balance contributed negatively to GDP growth of-0.6 points.

In contrast, changes in inventories contributed positively by +0.6 points..

Meanwhile, the EUR/USD traded at 1.04, up 0.15 percent, while at 9:00GMT, the FxWirePro's Hourly Euro Strength Index remained highly bullish at 154.72 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex