Preliminary data published by INSEE showed that GDP grew by 0.3% in the 2nd quarter after a similar increase in the 1st quarter (revised from +0.2%). Economists had expected growth to slow to 0.2%. On an annual basis, the economy expanded by 1.1% after growing by 1.5% in the 1st quarter (revised from +1.1%).
INSEE stated that final domestic demand (excluding inventory) made a positive contribution to GDP growth this quarter (+0.1% after 0.0% in the first quarter). Household consumption was stable this quarter (0.0% after -0.1%). Foreign trade also made a positive contribution to growth (+0.2% after +0.3%). Finally, changes in inventories made no contribution to GDP growth again this quarter.
Total production (goods and services) rose 0.5% after falling 0.1% in the previous quarter. Manufacturing industry output fell again this quarter (-0.4% after -0.7%). Construction output fell by 0.7% after a 1.1% decline in the 1st quarter. By contrast, the output of market services grew by 0.8% after +0.7% in the 1st quarter.