French GDP rose by 0.2% in Q2 2018, as expected

In Q2 2018, GDP in volume terms rose at the same pace as in Q1: +0.2%. Household consumption expenditures faltered slightly (−0.1% after +0.2%), whereas total gross fixed capital formation recovered sharply (GFCF: +0.8% after +0.2%). Overall, final domestic demand excluding inventory changes contributed as much to GDP growth as in Q1 (+0.2 points).

Imports bounced back this quarter (+1.0% after −0.4%) as did exports to a lesser extent (+0.2% after −0.4%). All in all, foreign trade balance contributed negatively to GDP growth, −0.3 points, after a neutral contribution in Q1. Conversely, changes in inventories drove GDP on (+0.2 points after 0.0 points).

Production in goods and services barely accelerated in Q2 2018 (+0.2% after +0.1%). It fell back again in goods (−0.3% after −0.6%) while it continued to grow in services (+0.4% after +0.3%).

Output in manufactured goods fell back again this quarter (−0.2% after −1.0%). Production in refinery stepped back (−10.2% after −1.6%) due to technical maintenance; production in electricity and gas dropped too (−1.7% after +1.8%). However, construction bounced back (+0.5% after −0.4%).