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- France's GDP growth unexpectedly slowed in the second quarter
France's GDP growth unexpectedly slowed in the second quarter
According to the report from Insee, in Q2 2019, GDP in volume terms decelerated slightly: +0.2% after +0.3%. Economists had expected a 0.3% increase.
Household consumption expenditures decelerated (+0.2% after +0.4%), while total gross fixed capital formation accelerated sharply (GFCF: +0.9% after +0.5%). Overall, final domestic demand excluding inventory changes accelerated slightly: it contributed 0.4 points to GDP growth, after 0.3 points in the previous quarter.
Imports remained almost stable in Q1 (+0.1% after +1.1%) and exports grew at the same pace than previously (+0.2%). All in all, foreign trade balance did not contribute to GDP growth: 0.0 points, after −0.3 points during the previous quarter. Changes in inventories contributed negatively to GDP growth (−0.2 points after +0.3 points).
Production of goods and services grew at almost the same pace as in the two previous quarters (+0.4% after +0.5% during three quarters). It was stable in goods (+0.0% after +0.5%), while it grew at the same pace in services (+0.5%). Output in manufactured goods fell back this quarter (−0.4% after +0.5%), mainly because production of refineries (one of them being in maintenance) and in transport equipment fell back. Production in construction decelerated (+0.3% after +0.6%).
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